ANO Ltd. is providing the following information: Annual cost of saving Useful life Salvage value Internal rate of return Profitability index Table of discount factor - Discount factor 15% 14% 13% Year 1 0.87 0.877 0.886 You are required to calculate - 1. Cost of the project 2. Payback period 3. Net present value of cash inflow 4. Cost of capital Year 2 0.756 0.769 0.783 Year 3 0.658 0.675 0.783 Year 4 0.572 0.592 0.614 Rs.96,000 5 years 0 15% 1.05 Year 5 0.497 0.519 0.544 Total 3.353 3.432 3.52

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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ANO Ltd. is providing the following information:
Annual cost of saving
Useful life
Salvage value
Internal rate of return
Profitability index
Table of discount factor -
Discount factor
15%
14%
13%
Year 1
0.87
0.877
0.886
You are required to calculate -
1. Cost of the project
2. Payback period
3. Net present value of cash inflow
4. Cost of capital
Year 2
0.756
0.769
0.783
Year 3
0.658
0.675
0.783
Year 4
0.572
0.592
0.614
Rs.96,000
5 years
0
15%
1.05
Year 5
0.497
0.519
0.544
Total
3.353
3.432
3.52
Transcribed Image Text:ANO Ltd. is providing the following information: Annual cost of saving Useful life Salvage value Internal rate of return Profitability index Table of discount factor - Discount factor 15% 14% 13% Year 1 0.87 0.877 0.886 You are required to calculate - 1. Cost of the project 2. Payback period 3. Net present value of cash inflow 4. Cost of capital Year 2 0.756 0.769 0.783 Year 3 0.658 0.675 0.783 Year 4 0.572 0.592 0.614 Rs.96,000 5 years 0 15% 1.05 Year 5 0.497 0.519 0.544 Total 3.353 3.432 3.52
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