The cash flow streams for three alternative investment A, B, C andD are:ProjectСоCash Flow (Tk.)C1C2C3C4C5C6A230000550004500065000450007500050000В290000450009000035000950006500055000310000750005500060000550006500045000D3500007700075000950008500065000Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%,and (ii) IRR for the four alternatives.

Given information: Required rate of return is 11%

The cash flow streams for three alternative investment A, B, C and D are: Project Cash Flow (Tk.) Со C1 C2 C3 C4 C5 C6 A 230000 55000 45000 65000 45000 75000 50000 290000 45000 90000 35000 95000 65000 55000 C 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.

The cash flow streams for three alternative investment A, B, C and D are: Project Cash Flow (Tk.) Со C1 C2 C3 C4 C5 C6 A 230000 55000 45000 65000 45000 75000 50000 290000 45000 90000 35000 95000 65000 55000 C 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

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