The cash flow streams for three alternative investment A, B, C and D are: Project Co Cash Flow (Tk.) C2 Cs C 55000 C3 C4 C6 A 230000 45000 65000 45000 75000 50000 B 290000 45000 90000 35000 95000 65000 55000 C 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.
The cash flow streams for three alternative investment A, B, C and D are: Project Co Cash Flow (Tk.) C2 Cs C 55000 C3 C4 C6 A 230000 45000 65000 45000 75000 50000 B 290000 45000 90000 35000 95000 65000 55000 C 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 8P
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