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What is the net present value and internal rate of return

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Question 1: The Phillips Corporation which has 50% tax rate and a 10% after-tax cost of capital, is evaluating a project which will cost Rs. 1,00,000 and will require an increase in the level of inventories and receivables of Rs. 50,000 over its life. The project will generate additional sales of Rs. 1,00,000 and will require cash expenses of Rs. 30,000 in each year of its 5 year life; it will be depreciated on a straight-lined basis. What is the net present value and internal rate of return for the project?

Reference no: EM132567539

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