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Compute the net present value

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Q1) In the following, compute the Net Present Value (NPVs) of the three projects for each of the possible cash flows.

Particulars

Project Education (Rs. 000s)

Project Oil &Gas (Rs 000 s) 

Project Hospitals (Rs. 000s)

Initial Cash Outflows (T = 0)

30

50 

30

Cash inflows estimates (T = 1-10)

 

 

 

Worst

5

3

8

Most likely

8

14

10

Best

15

37

20

Cost of Capital 

14%

20%

16%

Economic life (years)

10

10 

10
  1. Select the best Project under the given circumstances. Prepare a short report to CFO and validate the statement of choosing the best project. If there was no Global pandemic would your projections get changed. 

Reference no: EM133060229

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