With the following information, calculate the projects (1) Net present value , (2) Internal rate of return:

Question:

With the following information, calculate the projects
(1) Net present value,
(2) Internal rate of return:

With the following information, calculate the projects (1) Net present

Sensitivity analysis
Calculate, for each of the following, the NPV, IRR, and payback period if
(a) Capital assets are increased by 10%.
(b) Working capital is increased by 5%
(c) Cash inflows are increased by 5%.
(d) Capital assets are increased by 20% and cash inflows by 15%.
(e) Both working capital and cash inflows are decreased by 10%.
(f) Cost of capital is increased to8%.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...
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