Give your analysis whether project is accepted or rejected

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Question - PT ABC has data for the project of establishing a factory as follows:

Value of initial investment Rp100.000.000

The investment period is five years.

Revenue Rp25.000.000 (first year), Rp30.000.000 (second year), Rp35.000.000 (third year), Rp40.000.000 (fourth year) and Rp45.000.000 (fifth year)

Required rate of return for project is 12%

Please calculate for Net Present Value (NPV), Payback Period and Profitability Index.

Give your analysis whether the project is accepted or rejected.

Reference no: EM133148251

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