A firm whose cost of capital is 10% is considering two mutually exclusive projects, X and Y,
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● A firm whose cost of capital is 10% is considering two mutually exclusive projects, X and Y, the details of which are:
Project X
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Project Y
`
Investment 70,000 70,000 Net Cash flow:
Year 1 10,000 50,000 2 20,000 40,000 3 30,000 20,000 4 45,000 10,000 5 60,000 10,000 1,65,000 1,30,000 Compute Net Present Value and Profitability index for the two projects and comment on the result.
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Related Book For 
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana
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