1) Pay back period 2) Net present value 3) Profitability Index 4) Internal Rate of Return

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 19PROB
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12:09 pm
l 36%
4_58346850211...
Assignment- project analysis and evaluation
Business management –ext -3d year 2021 g.c
Ex: 1. A company is considering to appraise two projects. Two projects are
available X and Y each costing $ 50, 000. the annual cash flows are expected as
below.
ACFS
Year
Plant X
Plant Y
1
$ 15, 000
$ 5, 000
20, 000
15, 000
3
25, 000
20, 000
4
15, 000
30, 000
5
10, 000
20, 000
The cost of capital is 10%.
Calculate
1) Pay back period
2) Net present value
3) Profitability Index
4) Internal Rate of Return
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Transcribed Image Text:12:09 pm l 36% 4_58346850211... Assignment- project analysis and evaluation Business management –ext -3d year 2021 g.c Ex: 1. A company is considering to appraise two projects. Two projects are available X and Y each costing $ 50, 000. the annual cash flows are expected as below. ACFS Year Plant X Plant Y 1 $ 15, 000 $ 5, 000 20, 000 15, 000 3 25, 000 20, 000 4 15, 000 30, 000 5 10, 000 20, 000 The cost of capital is 10%. Calculate 1) Pay back period 2) Net present value 3) Profitability Index 4) Internal Rate of Return Scanned by CamScanner ...
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