1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020....
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1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals have following forecast particulars: (8 Marks ) Details Proposal – A Proposal – B 280,000 5 Years Cost of the Investment 200,000 Estimated Life 4 Years Scrap Value Nil Nil Profit After Tax for OMR OMR 2020 5,000 20,000 35,000 25,000 Nil 2021 34,000 34,000 34,000 34,000 2022 2023 2024 Assuming cost of capital at 12% p.a., evaluate the best investment proposal using following methods: a) Payback Period b) Net Present Value c) Discounted Payback Period d) Internal Rate of Return Note: Presentation must have the summary of all the points written in the report. 1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals have following forecast particulars: (8 Marks ) Details Proposal – A Proposal – B 280,000 5 Years Cost of the Investment 200,000 Estimated Life 4 Years Scrap Value Nil Nil Profit After Tax for OMR OMR 2020 5,000 20,000 35,000 25,000 Nil 2021 34,000 34,000 34,000 34,000 2022 2023 2024 Assuming cost of capital at 12% p.a., evaluate the best investment proposal using following methods: a) Payback Period b) Net Present Value c) Discounted Payback Period d) Internal Rate of Return Note: Presentation must have the summary of all the points written in the report.
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Present Value of Cash FlowCash Flow1iN idiscount rateCost of Capi... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz
Posted Date:
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