M/s Sons & Sons is considering two projects, A &B, with cash flows as shown below: Cash Flow of period Project A Project B -90,000 30,000 30,000 -150,000 1 72,000 35,000 3 30,000 40,000 25,000 4 30,000 a. Calculate discounted payback period, net present value and intermal rate of return for each project using opportunity cost of capital 13 % & 9% for project A & B respectively.
M/s Sons & Sons is considering two projects, A &B, with cash flows as shown below: Cash Flow of period Project A Project B -90,000 30,000 30,000 -150,000 1 72,000 35,000 3 30,000 40,000 25,000 4 30,000 a. Calculate discounted payback period, net present value and intermal rate of return for each project using opportunity cost of capital 13 % & 9% for project A & B respectively.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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