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Altmas Corporation is considering a project for the ensuing budgeting year costing * 1,43,000. The required rate of return for the company is 20 per
Altmas Corporation is considering a project for the ensuing budgeting year costing * 1,43,000. The required rate of return for the company is 20 per cent and the net after-tax cash flows expected by the
However, the consultant of the company has advised that IRR methods should be used to evaluate such projects. You are also been required to critically evaluate the advice of the consultant.
project are as follows. Evaluate the project using the Net Present Value method.
Year
1
2
3
5
6
CFAT
40,000
48,000
56,000
64,000
72,000
80,000
Altmas Corporation is considering a project for the ensuing budgeting year costing * 1,43,000. The required rate of return for the company is 20 per cent and the net after-tax cash flows expected by the
However, the consultant of the company has advised that IRR methods should be used to evaluate such projects. You are also been required to critically evaluate the advice of the consultant.
|
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| project are as follows. Evaluate the project using the Net Present Value method. |
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| Year | 1 | 2 | 3 |
| 5 | 6 |
| CFAT | 40,000 | 48,000 | 56,000 | 64,000 | 72,000 | 80,000 |
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