Mr. Ali has recently retired from his job and got handsome amount from his employer. He wants to invest his money in a profitable project. He got two different projects along with their initial costs and expected cash flows for next 6 years as follows:View more random threads:
- students should help each other in this assignment forum
- mcm511 assignment no 1 idea solution 2011
- CS101 Introduction to Computing Assignment No 3 solution 31...
- MGMT611 assignment no 2 fall 2010
- Eng 101 English Comprehension Assignment 3 Spring June 2011
- ECO 401 Assignment # 2 solution
- en101 English Comprehension Assignment No. 2 idea solution...
- plz any one of consumer behavior course post me assignment...
- MTH202 Discrete Mathematics Assignment 1 Of Fall spring 25...
- fin630 assignment no 2 idea solution spring 11 November 2011
Period
Project A
(Rs.)
Project B
(Rs.)
0
-250,000
-250,000
1
30,000
70,000
2
50,000
80,000
3
60,000
90,000
4
90,000
40,000
5
100,000
20,000
6
120,000
10,000
Sponsored Links
He doesn’t have enough knowledge to check the financial feasibility of projects. So, he approaches to a financial consultancy firm to get these projects evaluated regarding their financial viability. Being an employee of the financial consultancy firm, you have been assigned the task to analyze these projects by using the following capital budgeting techniques:
1. Payback period (Desired period is 4 year) [ 4 + 4 = 08 ]
2. Net Present Value (NPV) [ 7 + 7 = 14 ]
3. Profitability Index (PI) [ 3 + 3 = 06 ]
Considering both projects mutually exclusive, suggest which of the two projects is feasible and why? [ 1 + 1 = 2 ]
There are currently 1 users browsing this thread. (0 members and 1 guests)