Your company is considering investment in a Project A. Project A involves an outlay of Rs.250...

 

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Your company is considering investment in a Project A. Project A involves an outlay of Rs.250 million which will generate an expected cash inflow of Rs.60 million per year for 8 years. Calculate the NPV, IRR and benefit cost ratio of the project if the cost of capital is 14% PV Years Factor 1 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 2 3 4 5 6 78 Your company is considering investment in a Project A. Project A involves an outlay of Rs.250 million which will generate an expected cash inflow of Rs.60 million per year for 8 years. Calculate the NPV, IRR and benefit cost ratio of the project if the cost of capital is 14% PV Years Factor 1 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 2 3 4 5 6 78

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount the cash inflows using the ... View the full answer