Question
Project A has an initial investment of Rs. 22 million and projector cash inflow of Rs 80,00,000 for 5 years/Project B has an initial instant
Project A has an initial investment of Rs. 22 million and projector cash inflow of Rs 80,00,000 for 5 years/Project B has an initial instant Rs 19.5ion and projected cash inflows of Ra 65.30,000 for 5 years. Assume the discount rate to be 11 percent during Year 1 and thereby increase by 1 percent each year. Work out the NPV of the two projects and compare the results, Which project should be approved? Why?
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
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