Question
Theta Ltd evaluates a project with the following cash flows: Year12345 Rs.1,10,0001,30,0001,20,0001,00,00090,000 Initial Outlay: Rs. 5,00,000 Life Span: 5 years, no residual value Depreciation: 10%
Theta Ltd evaluates a project with the following cash flows:
Year12345
Rs.1,10,0001,30,0001,20,0001,00,00090,000
•Initial Outlay: Rs. 5,00,000
•Life Span: 5 years, no residual value
•Depreciation: 10% annually
•Tax Rate: 35%
•Requirements:
1.Payback Period (PBP)
2.ARR
3.NPV at 12% cost of capital
4.IRR
5.DPBP
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Practical Management Science
Authors: Wayne L. Winston, Christian Albright
5th Edition
1305631540, 1305631544, 1305250907, 978-1305250901
