A company is considering an investment proposal to install new milling machine. The project will cost Rs.600,000. The facility has a life expectancy of 5 years and no salvage value. Firm uses straight-line method for depreciation. The estimated earning before tax from the proposed investment plan are as under. Firm Cost of capital 10% . Year Cash Flow Rs. 220,000 180,000 140,000 150,000 250,000 Note: No need to enter currency symbol and comma just type numbers with nearest round off number and percentages (for example: 10000 or 10000.65=10001 or 10.65%=10.65) if the answer of payback is 2 years 5.65 month so you have to type 2.6 Use above information to calculate Simple Payback period Use above information to calculate Discounted payback period Use above information to calculate NPV
A company is considering an investment proposal to install new milling machine. The project will cost Rs.600,000. The facility has a life expectancy of 5 years and no salvage value. Firm uses straight-line method for
.
Year Cash Flow
- Rs. 220,000
- 180,000
- 140,000
- 150,000
- 250,000
Note: No need to enter currency symbol and comma just type numbers with nearest round off number and percentages (for example: 10000 or 10000.65=10001 or 10.65%=10.65)
if the answer of payback is 2 years 5.65 month so you have to type 2.6
Use above information to calculate
Simple Payback period
Use above information to calculate
Discounted payback period
Use above information to calculate
NPV
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