Bajaw, Inc., are currently evaluating the following two projects: Year Cashflow (A) Cashflow (B) 0 -80,000
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Question:
Bajaw, Inc., are currently evaluating the following two projects:
Year | Cashflow (A) | Cashflow (B) |
0 | -80,000 | -100,000 |
1 | 45,000 | 10,000 |
2 | 25,000 | 40,000 |
3 | 20,000 | 45,000 |
4 | 10,000 | 120,000 |
Assuming the discount rate is 10% Select the best project according to each of the following evaluation method? (Make sure you show your final calculation for each evaluation method used)
-Payback period
-NPV for project
-IRR for project
-PI for project
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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