ACC501 Assignment n0 2 Solution idea solution June 2011

[Vuhelper]

my answers are

FOR A

Payback Period = 4.13 Years

NPV = Rs. -5,937

Profitability Index = 0.97

FOR B

Payback Period = 3.67 Years

NPV= Rs. 16,585

Profitability index = 1.08



Formulas are

for payback period "http://www.zenwealth.com/BusinessFinanceOnline/CB/PaybackPeriod.html"

this link is nice

FOR NPV

NPV = sum of all PV -Initial Investment

FOR PI

PI = sum of all PV / Initial investment