Question
a. Calculate the following for each of the projects. I. Net present value II. Profitability Index III Internal Rate of Return and IV. Accounting
a. Calculate the following for each of the projects. I. Net present value II. Profitability Index III Internal Rate of Return and IV. Accounting Rate of Return for each project. V. payback period VI. Discounted payback period PROJECTS A Initial Cost $230,000 Expected life Scrap value expected Expected cash inflows S200,000 5 years s10,000 5 years $15,000 End year 1 80 000 100 000 2 70 000 70 000 3 65 000 50 000 4 60 000 50 000 5 55 000 50 000 Cost of capital is 15%, the base rate prevailing is 10%
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Introduction to Corporate Finance
Authors: Scott B. Smart, William L Megginson
2nd edition
9780324658958, 0324658958, 978-0324657937
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