Nikita Berhad is evaluating a project which expected to earn a series of cash inflows as shown in the table below. The initial investment of this project is RM52,300. If the required rate of return is 12 percent, determine whether this project is profitable or loss by calculating the net present value and profitability index techniques.
Nikita Berhad is evaluating a project which expected to earn a series of cash inflows as shown in the table below. The initial investment of this project is RM52,300. If the required rate of return is 12 percent, determine whether this project is profitable or loss by calculating the net present value and profitability index techniques.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Nikita Berhad is evaluating a project which expected to earn a series of
If the required
Transcribed Image Text:Year
1
2
23456
5
Cash Inflow (RM)
12,500
20,750
35,020
36,000
37,500
38,800
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