Question
Sigma Industries is considering two projects with the following cash flows: Period Project W Cost Project W Net Cash Flow Project X Cost Project X
Sigma Industries is considering two projects with the following cash flows:
Period | Project W Cost | Project W Net Cash Flow | Project X Cost | Project X Net Cash Flow |
0 | 15,000 | - | 12,000 | - |
1 | 7,000 | 7,000 | 5,000 | 5,000 |
2 | 4,000 | 7,000 | 4,000 | 5,000 |
3 | 3,000 | 8,000 | 3,000 | 6,000 |
For each project, compute its payback period, net present value, and profitability index using a discount rate of 13%.
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
