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MNO Enterprises is considering two capital investments. The company's cost of capital is 10% and the tax rate is 27%. The details are as follows:
- MNO Enterprises is considering two capital investments. The company's cost of capital is 10% and the tax rate is 27%. The details are as follows:
Particulars | Investment A | Investment B |
Cost of investment | 14,00,000 | 17,00,000 |
Expected life | 4 years | 4 years |
Annual Income (before Tax & Depreciation) | 3,75,000 | 4,75,000 |
- Depreciation is charged on a straight-line basis. You are required to calculate: a. Discounted payback period b. NPV c. Profitability index
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Nature Of Mathematics
Authors: Karl J. Smith
13th Edition
1133947255, 978-1133947257
