Your company has Evaluating two project A & B. You have calculated PV, IRR and Profitability...
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Your company has Evaluating two project A & B. You have calculated PV, IRR and Profitability Index of these projects as given below Project PV A B $25 million Initial Investment $10 million $100 million $50 million IRR 10% 12% Profitability Index ? 1)Calculate profitability Index of Project A and B M-04 M-02 1) Which project do you accept in case these projects are mutually exclusive and why? b)Calculate IRR if you invest Rs. 150,000 and you will get 40,000 per annum in next five years (Find IRR between 10% to 11%) M-04 Your company has Evaluating two project A & B. You have calculated PV, IRR and Profitability Index of these projects as given below Project PV A B $25 million Initial Investment $10 million $100 million $50 million IRR 10% 12% Profitability Index ? 1)Calculate profitability Index of Project A and B M-04 M-02 1) Which project do you accept in case these projects are mutually exclusive and why? b)Calculate IRR if you invest Rs. 150,000 and you will get 40,000 per annum in next five years (Find IRR between 10% to 11%) M-04
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a To calculate the profitability index we need the formula Profitability Index PV of Cash Flows Init... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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