Compute the net present value

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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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