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Q2. Khaleegi company is in a process of Major Investment in Long term projects. They have two alternative projects with different cash inflows. Suggest which
Q2. Khaleegi company is in a process of Major Investment in Long term projects. They have two alternative projects with different cash inflows. Suggest which project will be feasible to choose by using Payback method of capital budgeting. The cash flows are as follows(10 marks)
Year | 1 | 2 | 3 | 4 | 5 | Cash Outflow |
Cash Flow in project A | 6000 | 4000 | 7000 | 4000 | 8000 | 25000 |
Cah Flow in Project B | 4000 | 17000 | 12000 | 3000 | 4000 | 25000 |
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