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Q.1 The Redux Ltd. is consideration a project that requires an initial cash outlay of Rs. 50,00,000. The following are financial details of the
Q.1 The Redux Ltd. is consideration a project that requires an initial cash outlay of Rs. 50,00,000. The following are financial details of the project being considered. (06 marks) Particular Sales Variable costs Fixed costs Depreciation Interest Expenses Amount (Rs.) 80,00,000 40,00,000 15,00,000 6,00,000 4,00,000 The tax rate applicable to the Redux Ltd is 35% and its cost of capital is 12%. Compute (i) net present value and (ii) profitability index for the project.
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
