M/s Priya Industries Ltd. is evaluating 2 options of investments. Each one has the following mentioned Cash
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Question:
M/s Priya Industries Ltd. is evaluating 2 options of investments. Each one has the following mentioned Cash Flows. Rate of Interest is 5%.
Evaluate the projects using: i) Pay-back period
ii) NPV
iii) IRR
(Show the calculations for each method.)
Which option you as the Chief Finance Officer of the Company would you select? Give reasons. (10 Marks)
Year
A
B
0
-40000
-50000
1
5000
8500
2
12000
15000
3
10000
12000
4
12500
12300
5
10500
10500
Related Book For
Discovering Advanced Algebra An Investigative Approach
ISBN: 978-1559539845
1st edition
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke
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