A Project costs 60,000 and is expected to generate cash inflows as: Year Cash inflows(
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A Project costs ₹ 60,000 and is expected to generate cash inflows as:
Year | Cash inflows( ₹ ) |
| |
1 | 10,000 |
2 | 12,000 |
3 | 15,000 |
4 | 18,000 |
5 | 20,000 |
6 | 22,000 |
Calculate Net Present Value and Profitability Index. Comment whether project should be accepted or not. Assume cost of capital is 10%. Enumerate the steps of calculation of NPV.
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
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