JKL Enterprises is analyzing two potential projects The companys cost of capital is 9 and tax rate is 27 Other information related to both projects are as follows Particulars Project M Project N Initial Investment 2,500,000 3,000,000 Expected life 4 years 4 years Annual Income (before Tax depreciation) 700,000 900,000 Depreciation is charged on a straight line basis You are required to calculate a Discounted payback b NPV c Profitability index

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Question: JKL Enterprises is analyzing two potential projects. The companys cost of capital is 9% and tax rate is 27%. Other information related to both projects

JKL Enterprises is analyzing two potential projects. The company’s cost of capital is 9% and tax rate is 27%. Other information related to both projects are as follows:

Particulars	Project M	Project N
Initial Investment	2,500,000	3,000,000
Expected life	4 years	4 years
Annual Income (before Tax & depreciation)	700,000	900,000

Depreciation is charged on a straight-line basis. You are required to calculate: a. Discounted payback b. NPV c. Profitability index

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