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Calculate net cash flows per year and npv at discount rate

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Akash Lid. is considering investment in a new project with equipment of RS. 10,00,000. The project will provide before-tax cash flows of Rs.6,00,000 per year for five years. The project will be totally financed through a 5 year loan with interest at 15% and annual repayments. The straight line method of depreciation over 5 years will be followed. The company has a tax rate of 40%. Calculate net cash flows per year and the NPV at a discount rate of 15%.

Reference no: EM133116721

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