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Xorno Company is considering an investment of tk. 30,00,000 in new project. The new project is expected to last 20 years. It will have tk.2.5
Xorno Company is considering an investment of tk. 30,00,000 in new project. The new project is expected to last 20 years. It will have tk.2.5 lac salvage value at the end of its useful life. Company management's required rate of return is 20% and minimum 5 years. The expected net income is tk. 50000. Net annual cash flow is tk. 65000 and at 13% interest rate, its present value is values tk. 2,10,74,400. Make the decision of capital budgeting in the following format: Calculation Accept/reject Reasons Techniques Cash payback period NPV IRR ARR
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