Question: Solve the given Case Study: 1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals
Solve the given Case Study: 1. Al Hisabil Manufacturers LLC can make either of two investments at the beginning of 2020. The given two proposals have following forecast particulars: (8 Marks ) Details Proposal - A Proposal - B Cost of the Investment 200,000 280,000 Estimated Life 4 Years 5 Years Scrap Value Nil Nil EL Profit After Tax for 2020 2021 2022 2023 2024 5,000 20,000 35.000 25,000 Nil 34.000 34,000 34,000 34.000 Assuming cost of capital at 12% p.a, evaluate the best investment proposal using following methods: a) Payback Period b) Net Present Value c) Discounted Payback Period d) Internal Rate of Return Note: Presentation must have the summary of all the points written in the report
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