Question
Calculate the NPV of two projects and suggest which one should be accepted assuming a discount rate of 12%. Project Alpha Project Beta Initial Investment
Calculate the NPV of two projects and suggest which one should be accepted assuming a discount rate of 12%.
Project Alpha | Project Beta | |
Initial Investment | Rs. 40,000 | Rs. 70,000 |
Estimated Life | 4 Years | 4 Years |
Scrap Value | Rs. 3,000 | Rs. 5,000 |
Years | 1 | 2 | 3 | 4 |
Alpha | 10,000 | 20,000 | 12,000 | 8,000 |
Beta | 50,000 | 20,000 | 15,000 | 10,000 |
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Financial Accounting
Authors: David Spiceland, Wayne Thomas, Don Herrmann
4th edition
1259307956, 978-1259307959
