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Consider the end of the year cash inflow of the following two investment project (in $) : YEAR INVESTMENT A INVESTMENT B 2021 200000 100000
Consider the end of the year cash inflow of the following two investment project (in $) :
YEAR | INVESTMENT A | INVESTMENT B |
2021 | 200000 | 100000 |
2022 | 400000 | 100000 |
2023 | 400000 | 100000 |
2024 | 400000 | 800000 |
2025 | 600000 | 1000000 |
Both Projects require an investment of $1000000 at the end of 2020. The required rate of return for both projects is 10%.
Calculate the payback, Discounted payback period, Net present value, Internal Rate of return,
Profitability Index.
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