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MNO Ltd. is evaluating two mutually exclusive projects. The company's cost of capital is 9% and the tax rate is 32%. Other information relating to
- MNO Ltd. is evaluating two mutually exclusive projects. The company's cost of capital is 9% and the tax rate is 32%. Other information relating to both projects is as follows:
Particulars | Project 1 | Project 2 |
Initial Capital | 1,500,000 | 2,000,000 |
Expected life | 4 years | 4 years |
Annual Revenue (before Tax & depreciation) | 450,000 | 550,000 |
- Depreciation is charged on a straight-line basis. You are required to calculate: a. Payback period b. NPV c. Profitability index d. IRR
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259565403
