Question

2. A project requires an initial investment of Rs. 5,00,000. It is estimated to have a life of 6 years.
The estimated net cash flows are as under:
Year
Net Cash Flow (Rs.)
1
60,000
80,000
3
1, 10,000
4
1, 20,000
5
1, 30,000
6
1,00,000
Cost of capital is 10%. Calculate:
a. Payback Period
b. Net Present Value
c. IRR of the project.
Assume that the standard payback period is 4 years. Should the project be accepted as per each of
the above measures? Why?
[Discount factors at 10% are 0.909, 0.826, 0.751, 0.683, 0.621, 0.564 for 1 to 6 years.]​

Answer 1

Answer:

hhhhhhhhhhhhhhhhhhiiiiiiiiiiiiiiiiiiiiiiiiii

hhhhhow are you