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Consider a four year project whose initial outlay is 320,000. The project Year 1 2 3 4 Cash flow sh,000 140 110 100 70 If
- Consider a four year project whose initial outlay is 320,000. The project
| Year | 1 | 2 | 3 | 4 |
| Cash flow sh,000 | 140 | 110 | 100 | 70 |
If the cost of capital is 12 % calculate the IRR of the project and recommend whether to accept or Reject same project. (10 marks)
- Calculate the payback period of the project (3 marks )
- Discuss four conflicts between NPV and IRR in capital appraisal (4mark
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
