Problem-11: The Corporation is considering a capital investment of Tk. 12,00,000 in a project, which is expected to yield the following cash flows: Year Cash inflow 1 2 3 4 to 6 7 150000 180000 160000 140000 190000 If the required rate of return is 12%, determine (i) NPV of the project and (ii) IRR of the project. Is the proposal an acceptable one?

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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Problem-11: The Corporation is considering a capital investment of Tk.
12,00,000 in a project, which is expected to yield the following cash flows:
Year
Cash inflow
1
2
3
4 to 6
7
150000
180000
160000
140000
190000
If the required rate of return is 12%, determine (i) NPV of the project and
(ii) IRR of the project. Is the proposal an acceptable one?
Transcribed Image Text:Problem-11: The Corporation is considering a capital investment of Tk. 12,00,000 in a project, which is expected to yield the following cash flows: Year Cash inflow 1 2 3 4 to 6 7 150000 180000 160000 140000 190000 If the required rate of return is 12%, determine (i) NPV of the project and (ii) IRR of the project. Is the proposal an acceptable one?
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