Net PRresnt value- Citron Industries has a project with the following projected cash flow Initial cost, year 0: 240,000 Cash flow year one: Rs 25,000 Cash flow year two: Rs 75,000 Cash flow year three: Rs 150,000 Cash flow year four: Rs 150,000 a. using a 10% discount rate for this project and the NPV model shpuld this project is accepted or rejected? b. Using 15 % discount rate? c. Using 20 % discount rate?
Net PRresnt value- Citron Industries has a project with the following projected cash flow Initial cost, year 0: 240,000 Cash flow year one: Rs 25,000 Cash flow year two: Rs 75,000 Cash flow year three: Rs 150,000 Cash flow year four: Rs 150,000 a. using a 10% discount rate for this project and the NPV model shpuld this project is accepted or rejected? b. Using 15 % discount rate? c. Using 20 % discount rate?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6PB: There are two projects under consideration by the Rainbow factory. Each of the projects will require...
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Net PRresnt value- Citron Industries has a project with the following projected cash flow
Initial cost, year 0: 240,000
Cash flow year one: Rs 25,000
Cash flow year two: Rs 75,000
Cash flow year three: Rs 150,000
Cash flow year four: Rs 150,000
a. using a 10% discount rate for this project and the NPV model shpuld this project is accepted or rejected?
b. Using 15 % discount rate?
c. Using 20 % discount rate?
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