From the following information calculate the Net Present Value of the two projects & suggestwhich of the two projects should be accepted assuming a discount rate of 10%.Project XRs. 20,0005 yearsRs. 1,000Project YRs. 30,0005 yearsInitial InvestmentEstimated LifeScrap ValueRs. 2,000The profits before Depreciation and after Taxes (Cash flows) are as follows:Project XRs. 5,000Project YRs. 20,000Year IYear 2Rs. 10,000Rs. 10,000Year 3Rs. 10,000Rs. 5,000Rs. 3,000Rs, 2,000Year 4Rs. 3,000Year 5Rs. 2,000Transcribed Image Text: From the following informationcalculate the Net Present Value of the two projects & suggestwhich of the two projects should be accepted assuming a discountrate of 10 %. Project Y Rs. 30,000 Project X Initial InvestmentEstimated Life Rs. 20,000 5 years 5 years Scrap Value Rs. 1,000 Rs.2,000 The profits before Depreciation and after Taxes (Cash flows)are as follows: Project X Rs. 5,000 Project Y Year I Rs. 20,000 Year 2Rs. 10,000 Rs. 10,000 Rs. 5,000 Rs. 3,000 Rs. 2,000 Year 3 Rs. 10,000Year 4 Rs. 3.000 Year 5 Rs, 2,000

Investment appraisal deals with evaluating potential projects of a company. It involves comparing…

From the following information calculate the Net Present Value of the two projects & suggest which of the two projects should be accepted assuming a discount rate of 10%. Project X Project Y Initial Investment Rs. 20,000 Rs. 30,000 Estimated Life 5 years 5 years Scrap Value Rs. 1,000 Rs. 2,000 The profits before Depreciation and after Taxes (Cash flows) are as follows: Project X Rs. 5,000 Project Y Rs. 20,000 Year I Year 2 Rs. 10,000 Rs. 10,000 Year 3 Rs. 10,000 Rs. 5,000 Year 4 Rs. 3,000 Rs. 3,000 Year 5 Rs, 2,000 Rs. 2,000

From the following information calculate the Net Present Value of the two projects & suggest which of the two projects should be accepted assuming a discount rate of 10%. Project X Project Y Initial Investment Rs. 20,000 Rs. 30,000 Estimated Life 5 years 5 years Scrap Value Rs. 1,000 Rs. 2,000 The profits before Depreciation and after Taxes (Cash flows) are as follows: Project X Rs. 5,000 Project Y Rs. 20,000 Year I Year 2 Rs. 10,000 Rs. 10,000 Year 3 Rs. 10,000 Rs. 5,000 Year 4 Rs. 3,000 Rs. 3,000 Year 5 Rs, 2,000 Rs. 2,000

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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Nikul
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