Solution-Compute the net present value

Compute the net present value

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Reference no: EM132590716

Question - A firm whose cost of capital is 10% is considering two mutually exclusive projects X and Y, the details of which are:

Year	Project X	Project Y
Cost 0	Rs. 70,000	Rs. 70,000
Cash Inflows 1	Rs. 10,000	Rs. 50,000
2	Rs. 20,000	Rs. 40,000
3	Rs. 30,000	Rs. 20,000
4	Rs. 45,000	Rs. 10,000
5	Rs. 60,000	Rs. 10,000

Required - Compute the Net Present Value at 10%, Profitability Index, and Internal Rate of Return of the two projects.

Reference no: EM132590716

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Compute the net present value

Reference no: EM132590716

Reference no: EM132590716

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