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please help Inno-Tech Limited is analysing four projects for its new revenue generation initiative. All projects are equally risky. The cost of capital is 12%
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Inno-Tech Limited is analysing four projects for its new revenue generation initiative. All projects are equally risky. The cost of capital is 12% and the initial outlay for the projects is $90,000 each. The cash flow details of the projects are presented in the table below: Year Mobile Energy Tech Internet Initial Outlay (90,000) (90,000) (90,000) (90,000) 10,000 20,000 30,000 0 1 2. 20,000 20,000 3 30,000 0 30,000 35,000 4 30,000 40,000 35,000 50,000 40,000 5 0 30,000 30,000 30,000 50,000 i) Calculate each project's Payback period ii) Which project should be accepts under the Payback period? ill) Calculate each project's Net Present Value (NPV). iv) Based on the NPV results, if the projects are mutually exclusive, which project should be selected? v) Based on the NPV results, if the projects are independent, which project should be selected Step by Step Solution
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