The company is analyzing two investment projects in the amount of 15 million tenge (Kazakh currency)....
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The company is analyzing two investment projects in the amount of 15 million tenge (Kazakh currency). Year 1 2 Project A, million tenge 7,2 10,8 The equivalent investment cost is 10%. Determine: 1. Discounted net income (NPV) of each project. 2. Internal rate of return for each project. 3. Discounted liquidity period of each project. Project B, milllion tenge 5,4 7,8 4,8 The company is analyzing two investment projects in the amount of 15 million tenge (Kazakh currency). Year 1 2 Project A, million tenge 7,2 10,8 The equivalent investment cost is 10%. Determine: 1. Discounted net income (NPV) of each project. 2. Internal rate of return for each project. 3. Discounted liquidity period of each project. Project B, milllion tenge 5,4 7,8 4,8
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SOLUTION To calculate the discounted net income NPV of each project we need to discount each years net income using the equivalent investment cost of ... View the full answer
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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