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Posted on Jul 26, 2024

Project costs Rs 180,000 and is expected to generate cash inflows as: Year Cash inflows(Rs) 1 20,000 2 24,000 3 30,000 4 36,000 5 40,000

a. Discuss the characteristics of long term capital budgeting decisions?

b. calculate the Net Present Value of the project if the cost of capital is 12% and conclude.

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