Strategic Financial Management 1. From the following information of the two projects calculate the net present value
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Strategic Financial Management
1. From the following information of the two projects calculate the net present value and suggest which of the two projects should be accepted assuming a discount rate of 10%.
TABLE GIVEN BELOW
Project X | Project Y | ||
Initial Investment | ₹ 25,000 | ₹ 30,000 | |
Estimated Life | 5 years | 5 years | |
Scrap Value | ₹1,500 | ₹2,000 | |
| | | |
The profits before depreciation and after taxes are as follows:
Years | 1 | 2 | 3 | 4 | 5 |
Project X(₹) | 5,000 | 10,000 | 12,000 | 7,000 | 3,000 |
Project Y(₹) | 20,000 | 10,000 | 7,000 | 5,000 | 2,000 |
The answer should be a min of 800 Words in the word format with plagiarism-free.
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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