ASAP!! DO PART 4 and 5Sufain Limited planning to invest in a project with an initial investment of Rs. 2,000,000. Following is the sales forecast for 5 years of useful life. Cost of Capital 8%.YearCash Flows (Rs.)1 600,0002 750,0003 960,0004 1,200,0005 1,350,000Required:Net present value (NPV)Internal Rate of Return (IRR)Simple payback periodDiscounted payback periodAccounting Rate of Return

The discounted payback period is a modified version of the payback period which takes into account…

Answered: Sufain Limited planning to invest in a…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 4CMA

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ASAP!! DO PART 4 and 5

Sufain Limited planning to invest in a project with an initial investment of Rs. 2,000,000. Following is the sales forecast for 5 years of useful life. Cost of Capital 8%.

Year	Cash Flows (Rs.)
1	600,000
2	750,000
3	960,000
4	1,200,000
5	1,350,000

Required:

Net present value (NPV)
Internal Rate of Return (IRR)
Simple payback period
Discounted payback period
Accounting Rate of Return

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