The Basics of Capital Budgeting

QUESTION:

Flat 1 down payment = 200000

Flat 2 down payment = 250000

Number of installments = 5 years

Flat 1 per month = 25000

Flat 2 per month = 20000

Payment semi-annual payment

Flat 1=60000

Flat 2=55000

At time of the possession Flat 1 should pay 200000 & Flat 2 should pay 300000.At end of 5^th year Flat 1 sold 4000000 and Flat 2 sold 4000000

a) Calculate NPV of Flat 1 & Flat 2 according to the builders payment plan

b) Calculate NPV of Flat 1 & Flat 2 by your own per month plan (k=12%)