Solution-Compute the net present value

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

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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Compute the net present value

Reference no: EM133060229

Reference no: EM133060229

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