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
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
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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Question: Sufain Limited planning to invest in a project with an initial investment of Rs. 2,000,000. Following is the sales
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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