Question
Consider the following cash flow and calculate 1. Payback period 2. Discounted Payback period 3. NPV 4. IRR and 5. Profitability index. Rank the projects
Consider the following cash flow and calculate
1. Payback period 2. Discounted Payback period 3. NPV 4. IRR and 5. Profitability index. Rank the projects based on different capital budgeting techniques and show which one is worth to accept. Consider discount rate to be 9%. How your result would change if discount rate is changed to 7%?
| 0 | -550000 | -550000 |
| 1 | 45000 | 65000 |
| 2 | 65000 | -85000 |
| 3 | 80000 | 45000 |
| 4 | 98000 | 550000 |
| 5 | -50000 | 55000 |
| 6 | -180000 | 45000 |
| 7 | 190000 | -150000 |
| 8 | 195000 | 200000 |
| 9 | 250000 | 100000 |
| 10 | 245000 | 100000 |
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The House That Bogle Built How John Bogle And Vanguard Reinvented The Mutual Fund Industry
Authors: Lewis Braham
1st Edition
0071749063,0071751157
