Question
Investment Project Evaluation at BP plc Requirements: Evaluate BP plc's investment projects using NPV, IRR, and payback period methods. Investment Project Initial Investment ($) Annual
Requirements:
- Evaluate BP plc's investment projects using NPV, IRR, and payback period methods.
Investment Project | Initial Investment ($) | Annual Cash Flows ($) | Project Life (years) |
Project Epsilon | 14,000,000 | 4,000,000 | 5 |
Project Zeta | 11,000,000 | 3,500,000 | 6 |
- Calculate the NPV and IRR for both projects.
- Determine the payback period for each project.
- Recommend which project should be undertaken based on financial criteria.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
