Jyothi Labs has the oppurtunity to invest Rs.200,000 now (t=0) and expects after tax cash flows of Rs.80,000 in t=1, Rs.85,000 in t=2 and Rs.90,000 in t=3. The project will last for three years only. The appropriate cost of capital is 14% with all equity financing, the borrowing rate is 10% and JL will borrow Rs.150,000 against the project. This principal must be repaid in equal 3 installments of Rs.50,000 each. TAX is 25%. Calculate APV.

• • 
    
  • 
    

Answer rating: 100% (QA)

Calculating the Adjusted Present Value APV for Jyothi Labs Project Heres how to calculate the APV fo... View the full answer