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Y ltd intends to invest in 2 projects whose cash flows were as follows: YearsProject A Cash flowsProject B Cash flows Ksh.000Ksh.000 0 (80,000)(40,000) 116,000
Y ltd intends to invest in 2 projects whose cash flows were as follows:
YearsProject A Cash flowsProject B Cash flows
Ksh.000Ksh.000
0 (80,000)(40,000)
116,000 14,000
228,000 26,000
330,000 28,000
432,000-
534,000-
635,000-
If the discounting rate is 12%
Required:by way of 2 methods, advice on viability of the project using NPV technique and assume that the projects are mutually exclusive
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