Cenderawasih Holdings is evaluating two (2) mutually exclusive projects that require an initial investment of RM50,000. The cash flows for each project are gi as follows: Year Project Delima Projek Nilam RM10,000 RM15,000 RM20,000 RM15,000 3. RM26,000 RM15,000 RM25,000 RM15,000 5. RM15,000 RM15,000 Assume the cost of capital is 16 percent. Compute the Net Present Value (NPV) for each investment. 2.

Essentials Of Investments
11th Edition
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Cenderawasih Holdings is evaluating two (2) mutually exclusive projects that require an initial investment of RM50,000. The cash flows for each project are give
as follows:
Year
Project Delima
Projek Nilam
RM10,000
RM15,000
2.
RM20,000
RM15,000
RM26,000
RM15,000
RM25,000
RM15,000
5.
RM15,000
RM15,000
Assume the cost of capital is 16 percent. Compute the Net Present Value (NPV) for each investment.
3.
Transcribed Image Text:Cenderawasih Holdings is evaluating two (2) mutually exclusive projects that require an initial investment of RM50,000. The cash flows for each project are give as follows: Year Project Delima Projek Nilam RM10,000 RM15,000 2. RM20,000 RM15,000 RM26,000 RM15,000 RM25,000 RM15,000 5. RM15,000 RM15,000 Assume the cost of capital is 16 percent. Compute the Net Present Value (NPV) for each investment. 3.
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