Calculating the net present value

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Reference no: EM133077940

Question - DEF Company is considering two alternative investment proposals. WACC assumed 10%. Here is the financial data you need to make a recommendation to the management of DEF company (in millions of Rupiah):

Tahun

Project #1

Project #2

0

-400

-600

1

55

300

2

55

300

3

55

50

4

225

50

5

225

49

Required - Based on this information you are asked to:

a. Calculating the net present value (NPV) of Project #1 and Project #2

b. Recommend the project that DEF company should choose if the two alternative projects are mutually exclusive.

c. If the two alternatives are independent projects, will your recommendation to DEF company change? Why?

Reference no: EM133077940

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