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Following information is given below about Star ltd and Moon ltd. Year 1 2 3 4 Star ltd 450000 400000 120000 475000 Moon ltd 520000

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Following information is given below about Star ltd and Moon ltd. Year 1 2 3 4 Star ltd 450000 400000 120000 475000 Moon ltd 520000 298000 250000 145000 Each ltd Initial investment cost is Rs.1,000,000. Cost of capital (Discounting factor) is 10% YEAR 1 2 3 4 DISCOUNTING 0.909 0.826 0.751 0.683 FACTOR 10% 5 0.621 6 0.564 a) Calculate Discounted Pay Back Period for Moon project? b) Calculate Discounted Net Present Value for Star project

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