Question

ABC Electronics Co. Ltd. is considering the purchases of a machine. Two Machines A and B are available, cash costing Rs. 50,000. In comparing the profitability of these machine a discount rate of 10% is given. Year Cash inflows of Machine A (in Rs) Cash inflows of Machine B (in Rs) 1 15,000 5,000 2 20,000 15,000 3 25,000 20,000 4 15,000 30,000 5 10,000 20,000 Present value factors @ 10% are as follows: Year 1 2 3 4 5 Present value factor 0.909 0.826 0.751 0.683 0.621 Evaluate the project using : Pay-Back Period, b) Net Present Value and c) Profitability Index?​

Answer 1

Answer:

I think the answer is c . how are u