epp Corporation is considering two projects of machinery that perform the same task. The required rate of return for these projects is RM12%. The projects’ expected cash flows are as follows: Year Machine MIR (RM) Machine ZA (RM) 0 (37,000) (37,000) 1 13,000 16,500 2 15,000 15,500 3 22,000 20,000 4 17,000 19,500 Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques: 1、Payback Period… 2、Discounted Payback Period… 3、Net Present Value (NPV) … 4、Accounting Rate of Return… 5、Internal Rate of Return…… 6、Profitability Index, PI……
epp Corporation is considering two projects of machinery that perform the same task. The required rate of return for these projects is RM12%. The projects’ expected cash flows are as follows: Year Machine MIR (RM) Machine ZA (RM) 0 (37,000) (37,000) 1 13,000 16,500 2 15,000 15,500 3 22,000 20,000 4 17,000 19,500 Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques: 1、Payback Period… 2、Discounted Payback Period… 3、Net Present Value (NPV) … 4、Accounting Rate of Return… 5、Internal Rate of Return…… 6、Profitability Index, PI……
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
Problem 1PS
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epp Corporation is considering two projects of machinery that perform the same task. The required
|
Year |
Machine MIR (RM) |
Machine ZA (RM) |
|
0 |
(37,000) |
(37,000) |
|
1 |
13,000 |
16,500 |
|
2 |
15,000 |
15,500 |
|
3 |
22,000 |
20,000 |
|
4 |
17,000 |
19,500 |
Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques:
1、Payback Period…
2、Discounted Payback Period…
3、
4、Accounting Rate of Return…
5、
6、Profitability Index, PI……
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