Question
Having received a grant of from World Bank, University of Kisubi is contemplating two different projects and decides to perform a financial analysis to determine
Having received a grant of from World Bank, University of Kisubi is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown. University of Kisubi uses a required rate of return of 10% and an inflation rate of 4%.
- Compute the payback in years and the net present value for both projects and offer advice as to the best course of action. (15Marks)
| Year | A | B |
| 0 | -$250,000 | -$400,000 |
| 1 | $75,000 | $125,000 |
| 2 | $155,000 | $230,000 |
| 3 | $200,000 | $288,000 |
| 4 | $175,000 | $265,000 |
| 5 | $160,000 | $225,000 |
4b) Describe the purpose of a work breakdown structure while assessing the work to be accomplished in a project. (10 Marks)
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Cost Accounting Planning And Control
Authors: Adolph Matz, Milton F. Usry
10th Edition
0538809256, 978-0538809252
