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SML Investment Ltd evaluating three mutually exclusive investment projects. Cash flows associated with these three projects have given below. Plan A Plan B Plan C
SML Investment Ltd evaluating three mutually exclusive investment projects. Cash flows associated with these three projects have given below.
Plan A
Plan B
Plan C
Initial Outlay
-58,000
-60,000
-130,000
Year 1
28,000
14,500
37,200
Year 2
23,000
16,000
37,200
Year 3
15,000
37,200
Year 4
29,300
14,200
37,200
Year 5
36,800
37,200
The company expect 13% return on similar project.
You are required to estimate the net present value, profitability index and the payback period of each project.
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