A Project costs ? 60,000 and is expected to generate cash inflows as: Calculate Net Present Value

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A Project costs ? 60,000 and is expected to generate cash inflows as:

Year Cash inflows() 1 10,000 12,000 15,000 18,000 20,000 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 answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Posted Date: Apr 03, 2020 09:46 AM

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A Project costs ? 60,000 and is expected to generate cash inflows as: Calculate Net Present Value

Question:

Year 1 2 3 4 5 6 Cash inflows(3) 10,000 12,000 15,000 18,000 20,000 22,000 Year 1 2 3 4 5 6 Cash inflows(3) 10,000 12,000 15,000 18,000 20,000 22,000

Expert Answer:

Basic Finance An Introduction to Financial Institutions Investments and Management

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