Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zeal Ltd is studying two investment options X and Y, with expected future cash flows as shown below: What is discounted payback period of Project

Zeal Ltd is studying two investment options X and Y, with expected future cash flows as shown below:

image text in transcribed

  1. What is discounted payback period of Project X. The opportunity cost of capital 13% for project X
  2. What is discounted payback period of Project Y. The opportunity cost of capital 9% for project Y
  3. What is net present value of Project X. The opportunity cost of capital 13% for project X
  4. What is net present value of Project Y. The opportunity cost of capital 9% for project Y.
  5. What is internal rate of return of Project X. The opportunity cost of capital 13% for project X.
  6. What is internal rate of return of Project Y. The opportunity cost of capital 13% for project X.
  7. Which project(s) should be accepted if The projects are mutually exclusive and there is no capital constraint. Your answer would only be "X" or "Y"
  8. Which project(s) should be accepted if The projects are independent and there is no capital constraint? Your answer should be one of these "Both" , "One", "None"
  9. Which project(s) should be accepted if The projects are independent and there is a total of Rs. 300,000 of financing for capital outlays in the coming period. Your answer would only be "X" or "Y".
  10. What is payback period of Project Y. The opportunity cost of capital 9% for project Y

*Note: please answer all the questions and you may use excel or financial calculators just need the answer not the methods or calculations

year 0 1 2 3 4 S Cash Flow Project X Project Y - 150.000 -250,000 50.000 72,000 50.000 135.000 50.000 60,000 50,000 40,000 50,000 XXXX

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forex Definitive Beginner S Guide

Authors: Brian Stclair

1st Edition

1537664670, 978-1537664675

More Books

Students also viewed these Finance questions

Question

Can scope creep be controlled? Define some measures for this.

Answered: 1 week ago