1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPV

1. If you have the following information about ice-cream manufacturing unit Year Net Discount rate Returns 10% 2500 1. 700 0.909 -1000 0.826 3. 1450 0.751 1200 0.683 1700 0.621 6. 1350 0.564 7. -750 0.513 450 0.467 6. 1300 0.424 10 900 0.386 Calculate a) Discounted Payback period b) IRR and if the hurdle rate 35%, shall we accept the project or not ? Why? ) NPV

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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