Question
XYZ company is evaluating a project whose expected cash flows are as follows: Year Cashflow (Rs) 0 -1,00,000 1 1,00,000 2 2,00,000 3 3,00,000 4
XYZ company is evaluating a project whose expected cash flows are as follows: Year Cashflow (Rs) 0 -1,00,000 1 1,00,000 2 2,00,000 3 3,00,000 4 6,00,000 5 3,00,000
a) Calculate the NPV of the project if the discount rate is 12 % for the first year and increases by 1 % every year. b) Determine the IRR of the project
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
