Question
Here are some information related to two projects of the company with a cost of capital of 9% Project 1: Initial Investment is 87000
Here are some information related to two projects of the company with a cost of capital of 9% Project 1: Initial Investment is 87000 tk and the cash flows for the next five years will be 13000 tk, 25000 tk, 32000tk, 17000tk and 43400 tk. Project 2: Initial investment is 87000 tk with cash inflows of 29700 tk, 25500tk, 21950tk, 40280tk and 45700 tk for the coming years. Evaluate and Explain which project should be selected and why based on the four methods below and Also include the limitations of the methods a.Pay Back Period b.IRR C.NPV d.Discounted Payback period
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