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As a financial analyst of Homeland Company you are asked to analyze two proposed capital investment project that is investment in Fast Food Business and
As a financial analyst of Homeland Company you are asked to analyze two proposed capital investment project that is investment in Fast Food Business and Transportation Business. Each project has a cost of Tk. 6,00.000 and the expected net cash flows are as follows: Year 1 Expected Net Cash Flows Fast Food Transportation 75,000 2,00,000 82,000 2,00,000 2,80,000 2,00,000 3,50,000 2,00,000 2 3 4 4 i) ii) iii) iv) Calculate the pay back period for each project (Industry standard is 3.5 years) If the required rate of return is 10.5% then calculate the NPV for each project. Calculate the profitability index for these projects. Would you accept the project if they are independent
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