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ABC Ltd. is considering the following two mutually exclusive projects. Project X Kshs.110,000 Investment outlay Cash inflows Year 1 Year 2 Year 3 Year
ABC Ltd. is considering the following two mutually exclusive projects. Project X Kshs.110,000 Investment outlay Cash inflows Year 1 Year 2 Year 3 Year 4 31,000 40,000 50,000 70,000 Project Y Kshs.110,000 71,000 40,000 40,000 20,000 The cost of capital associated with this firm is 10% per annum. Required: Carry out financial feasibility analysis of the projects on the basis of: i. Net Present Value. ii. Profitability Index (3 marks) (3 marks)
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
