You've been proposed a project of opening a car showroom naming Honda Cars. Calculate using the capital budgeting techniques, NPV (Net Present Value), PBP (Payback Period) and PI (Profitability Index). Compare these results to Write briefly that if this project for opening the car showroom "Honda Cars" will be a profitable or a loss project and why? Why will you decide to approve or reject the proposal? Defend your answer.

Project Car Showroom,

Honda Cars, opening the showroom,

Investing initially THB 10 million baht. 

From 1-5 years, total cash flow

 Year 1 - THB 1,000,000 

 Year 2 - THB 3,000,000

 Year 3 - THB 5,000,000

 Year 4 - THB 3,500,000

 Year 5 - THB 4,000,000

Bank Hurdle rate : 12% 

Period 1 2 3 4 5 1% 2% 3% 4% 0.9901 0.9804 0.9709 0.9615 0.9803 0.9612 0.9426 0.9246 0.9706 0.9423 0.9610 0.9238 0.9151 0.8890 0.8885 0.8548 0.8626 0.8219 0.9515 0.9057 5% 0.9524 0.9070 0.8638 0.8227 0.7835 0.7473 6% 0.9434 0.8900 0.8396 0.8163 0.7921 0.7629 7% 8% 0.9346 0.9259 0.8734 0.8573 0.7938 0.7350 0.7130 0.6806 9% 10% 11% 12% 0.9174 0.9091 0.9009 0.8929 0.8264 0.8116 0.7972 0.8417 0.7722 0.7513 0.7312 0.7118 0.7084 0.6830 0.6587 0.6355 0.6499 0.6209 0.5935 0.5674