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This information is pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal C Initial Investment 60,000 60,000 60,000
This information is pertaining to the cash flows of three mutually exclusive investment proposals:
Proposal A Proposal B Proposal C
Initial Investment 60,000 60,000 60,000 60,000
Cash flow from operations
Year 1 50,000 30,000 60,000
Year 2 6,000 30,000
Year 3 29,000 25,000
Disinvestment 0 0 0
Life (Years) 3 yrs 3yrs 1yr
How do you Calculate the NPV and Profitability Index for each of the three proposals?
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