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Cash Flows and Investments (in ) Year Project A Project B Project C Initial Investment 5,000,000 7,500,000 10,000,000 Year 1 1,000,000 1,500,000 2,000,000 Year 2
Cash Flows and Investments (in ₹)
Year | Project A | Project B | Project C |
Initial Investment | 5,000,000 | 7,500,000 | 10,000,000 |
Year 1 | 1,000,000 | 1,500,000 | 2,000,000 |
Year 2 | 2,000,000 | 2,500,000 | 3,000,000 |
Year 3 | 3,000,000 | 3,500,000 | 4,000,000 |
Year 4 | 4,000,000 | 4,500,000 | 5,000,000 |
Year 5 | 5,000,000 | 5,500,000 | 6,000,000 |
- Calculate the NPV for each project using a 12% discount rate.
- Determine the IRR for each project.
- Compute the Payback Period for each project.
- Select the best project based on the highest NPV.
- Conduct a sensitivity analysis for Project A with a discount rate of 10% and 14%.
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