Question: Question 5. 1) Explain two types of mathematical tools to appraise capital investment decisions in business? Give examples. 15 Marks] II) Genesis Ltd. has 57,000

 Question 5. 1) Explain two types of mathematical tools to appraise

Question 5. 1) Explain two types of mathematical tools to appraise capital investment decisions in business? Give examples. 15 Marks] II) Genesis Ltd. has 57,000 to spend on capital investment projects. The company is currently evaluating two (2) projects for their future investment. Required rate of return is at 12%. Project A Project B Inflows () Outflows () Inflows () Outflows () 54,000 41,000 53,000 30,000 43,000 22,000 42,000 23,000 44,000 31,000 44,000 18,000 51,000 31,000 44,000 23,000 | Year 1 2 3 4 Use the above information to calculate and comment on the; a) Payback period [10 Marks b) IRR (Hint: Project A - between 5% to 10%; Project B - between 25% to 30%) [15 Marks

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!