Question: Q1. a)-Dala Corporation is considering a project, which will involve the following cash inflows and (out) flows Details Amount Initial Outlay SAR (400000) After 1

Q1.

a)-Dala Corporation is considering a project, which will involve the following cash inflows and (out) flows

Details

Amount

Initial Outlay

SAR (400000)

After 1 Year

SAR 40000

After 2 Years

SAR 300000

After 3Years

SAR 300000

What will be the NPV of this project if a discount rate of 15% is used?

Discount Rate Used

NPV

10%

SAR 1,30,000

15%

SAR 50,000

20%

SAR -50,000

b)-Merck Inc. is about to undertake a project and has computed the NPV of the project using a variety of discount rates

What is the approximate IRR of this project?

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