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Calculate the net present value

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Question - PT Motor & Cars has data for the project of establishing a factory as follows:

- Value of initial investment Rp1.000.000.000,-

- The investment period is five years.

- Revenue Rp250.000.000 (first year), Rp300.000.000 (second year), Rp300.000.000 (third year),

- Rp350.000.000 (fourth year) and Rp400.000.000 (fifth year)

- Required rate of return for project is 10%

Required - Calculate the Net Present Value (NPV), Discounted Payback Period, Profitability Index and Internal Rate of Return (IRR). Give your analysis whether the project is accept or reject?

Reference no: EM133161764

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