Question
YearEarnings (Rs. in lakhs) 1120 2130 3140 4150 5160 Initial investment: Rs. 450 lakhs Depreciation: 10% on a Written Down Value basis Scrap value at
YearEarnings (Rs. in lakhs)
1120
2130
3140
4150
5160
•Initial investment: Rs. 450 lakhs
•Depreciation: 10% on a Written Down Value basis
•Scrap value at the end of five years: 35%
•Cost of raising capital: 12%
•Income tax rate: 28%
Calculate:
1.NPV
2.IRR
3.Payback period
4.Profitability index
5.Discounted payback period
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Financial Accounting Theory and Analysis Text and Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
10th edition
470646284, 978-0470646281
