Question
Main dates of two mutually exclusive projects: Name Variant A Variant B Initial cash flow (tHUF) 24 250 14 450 Lifetime (year) 7 5 Net
Main dates of two mutually exclusive projects:
| Name | Variant A | Variant B |
| Initial cash flow (tHUF) | 24 250 | 14 450 |
| Lifetime (year) | 7 | 5 |
| Net operating cash flow p.a. (tHUF) | 8 000 | 6 500 |
| Expected rate of return (%) | 16 | 16 |
Solution problems:
- Calculate the projects net present value!
- Which of the variants would you choose if applying NPV as decision criterion?
- Which variant is better considering also the different lifetime of the projects?
- Estimate the internal rate of return of the projects by using tables (so not with punctually computing)!
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Raising Venture Capital
Authors: Rupert Pearce, Simon Barnes
1st Edition
0470027576, 978-0470027578
