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Question- Each of the following alternatives involves an initial outlay of BD 50,000. Their cash [10 marks] flows go as follows: Alternative G Alternative F
Question- Each of the following alternatives involves an initial outlay of BD 50,000. Their cash [10 marks] flows go as follows: Alternative G Alternative F Alternative H Year 10,000 10,000 5.000 4,000 10,000 10,000 3 15,000 10,000 12,000 10,000 4 17,000 22,000 10,000 20,000 24,000 Required: cash 1- Evaluate the above projects using payback period method. marks) 2- Evaluate the above projects using net present value (NPV) (use 11% discount rate). (6marks) 3- Evaluate the above projects using profitability index method.
Question- Each of the following alternatives involves an initial outlay of BD 50,000. Their cash flows go as follows: [10 marks) Year Alternative H Alternative G Alternative F 10,000 1 10,000 4,000 2 10,000 10,000 5,000 10,000 12,000 3 15,000 17,000 4 10,000 22,000 5 10,000 20,000 24,000 Required: Estimate and rank each alternative based on the following: 1- Evaluate the above projects using payback period method. 2- Evaluate the above projects using net present value (NPV) (use 11% discount rate). 3- Evaluate the above projects using profitability index method. (2 marks) (6 marks) (2 marks)Step by Step Solution
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