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Project A has an initial investment of Rs, 19 lakhs and projected cash inflows of Rs, 5,00,000 for 5 years. Project B has an initial
Project A has an initial investment of Rs, 19 lakhs and projected cash inflows of Rs, 5,00,000 for 5 years. Project B has an initial investment of Rs. 33.75 lakhs and projected cash inflows of Rs. 9,00,000 for 5 years. Assume the discount rate to be 9 percent throughout. (a) Work out the Undiscounted and Discounted Pay Back Period tor the two projects. If the criterion is 5 years, which project should be considered based on Discounted PBP? (b) Work out the Net Benefit Cost Ratio for the two projects. Which project is acceptable? Why? [4+4=8] Do all the calculations manually
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