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Question 02 The expected cash flows of a project are as follows. Year Cash Flow -100000 1 20,000 2 30,000 3 40,000 50,000 30,000 4 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period

Question 02 The expected cash flows of a project are as follows. Year Cash Flow -100000 1 20,000 2 30,000 3 40,000 50,000 30,000 4 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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Question 02 The expected cash flows of a project are as follows. Year Cash Flow -100000 1 20,000 30,000 40,000 2 4 50,000 5 30,000 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period
Transcribed Image Text:Question 02 The expected cash flows of a project are as follows. Year Cash Flow -100000 1 20,000 30,000 40,000 2 4 50,000 5 30,000 The cost of capital is 12 per cent. Calculate the following and evaluate the project under each methods a. net present value b. Profitability Index c. Internal rate of Return d. Modified internal rate of Return and Payback period
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