v) For projects A and B determine the Net present value (NPV) and the internal rate of return (IRR). The unit cost is (RO) 350 Description Capital (RO) Life (years) Capacity (units per year) Salaries per year (RO) Other fixed costs per year (RO) Project-A 355,000 Project-B 450,200 15 15 Wages per year (RO) Cost of materials per year (RO) Other variable costs per year (RO) Scrap value at the end of the year (RO) Cost of capital (%) 10,000 45,000 40,000 70,000 229,000 35,000 31,700 15 12,000 50,000 85,000 80,000 279,000 40,000 43,700 15

v) For projects A and B determine the Net present value (NPV) and the internal rate of return (IRR). The unit cost is (RO) 350 Description Capital (RO) Life (years) Capacity (units per year) Salaries per year (RO) Other fixed costs per year (RO) Project-A 355,000 Project-B 450,200 15 15 Wages per year (RO) Cost of materials per year (RO) Other variable costs per year (RO) Scrap value at the end of the year (RO) Cost of capital (%) 10,000 45,000 40,000 70,000 229,000 35,000 31,700 15 12,000 50,000 85,000 80,000 279,000 40,000 43,700 15

Name: v)For projects A and B determine the Net present value (NPV) and the
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Description: v)For projects A and B determine the Net present value (NPV) and the internal rate ofreturn (IRR). The unit cost is (RO) 350DescriptionCapital (RO)Life (years)Capacity (units per year)Salaries per year (RO)Other fixed costs per year (RO)Project-A355

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 10PROB

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