Question
You are evaluating two independent projects, F and G, whose cash flows are shown in the chart below. Calculate the NPV and PI for both
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You are evaluating two independent projects, F and G, whose cash flows are shown in the chart below. Calculate the NPV and PI for both projects. Given that the two projects are mutually exclusive, which project would you (or would you not) prefer? Assuming a discount rate of 15%
| Year | Project F ($) | Project G ($) |
| 0 | (50,000) | (70,000) |
| 1 | 12,000 | 13,000 |
| 2 | 12,000 | 13,000 |
| 3 | 12,000 | 13,000 |
| 4 | 12,000 | 13,000 |
| 5 | 12,000 | 13,000 |
| 6 | 12,000 | 13,000 |
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Venture Capital Islamic Finance And SMEs Valuation Structuring And Monitoring Practices In India
Authors: M. Durrani, G. Boocock
1st Edition
1403936382,0230626254
