Question: Table format with extended years: Projects C () C () C () C () C () C () Q -25,000 5,000 5,000 5,000 5,000 10,000
Table format with extended years:
Projects | C₀ (₹) | C₁ (₹) | C₂ (₹) | C₃ (₹) | C₄ (₹) | C₅ (₹) |
Q | -25,000 | 5,000 | 5,000 | 5,000 | 5,000 | 10,000 |
R | -20,000 | 4,000 | 4,500 | 5,000 | 5,500 | 6,000 |
S | -18,000 | 3,500 | 4,000 | 4,500 | 5,000 | 5,500 |
T | -15,000 | 3,000 | 3,500 | 4,000 | 4,500 | 5,000 |
Required:
- Calculate the payback period for each project.
- Determine which project meets a 4-year payback period.
- Compute the NPV at a 10% discount rate.
- Calculate the IRR for each project.
- Compare the projects using both NPV and IRR criteria and recommend the best project.
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