You've been proposed a project of opening a car showroom naming Honda Cars . Calculate using the
Question:
You've been proposed a project of opening a car showroom naming Honda Cars. Calculate using the capital budgeting techniques, NPV (Net Present Value), PBP (Payback Period) and PI (Profitability Index). Compare these results to Write briefly that if this project for opening the car showroom "Honda Cars" will be a profitable or a loss project and why? Why will you decide to approve or reject the proposal? Defend your answer.
Project Car Showroom,
Honda Cars, opening the showroom,
Investing initially THB 10 million baht.
From 1-5 years, total cash flow
Year 1 - THB 1,000,000
Year 2 - THB 3,000,000
Year 3 - THB 5,000,000
Year 4 - THB 3,500,000
Year 5 - THB 4,000,000
Bank Hurdle rate : 12%
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