Strategic Financial Management

1. From the following information of the two projects calculate the net present value and suggest which of the two projects should be accepted assuming a discount rate of 10%.

TABLE GIVEN BELOW

 

Project X		Project Y
Initial Investment	₹ 25,000		₹ 30,000
Estimated Life	5 years		5 years
Scrap Value	₹1,500		₹2,000

 

The profits before depreciation and after taxes are as follows:

Years	1	2	3	4	5
Project X(₹)	5,000	10,000	12,000	7,000	3,000
Project Y(₹)	20,000	10,000	7,000	5,000	2,000

The answer should be a min of 800 Words in the word format with plagiarism-free.