Medi Metro organization is the greatest organization in the shoe fabricating industry. The CEO of Medi Merto needs to invest in three undertakings. Project A, Project B, and Project C. Project A discount rate is 13%, Project B discount rate is 11%, and Project C discount rate is 9%. The Projects have the following net Cash Flow. Choose which of them ought to be worthy of utilizing the NPV, and PI techniques and why.  Projects have the following net cash flows.

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
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Question No 06:                                                                          

Medi Metro organization is the greatest organization in the shoe fabricating industry. The CEO of Medi Merto needs to invest in three undertakings. Project A, Project B, and Project C. Project A discount rate is 13%, Project B discount rate is 11%, and Project C discount rate is 9%. The Projects have the following net Cash Flow. Choose which of them ought to be worthy of utilizing the NPV, and PI techniques and why.

 Projects have the following net cash flows.

PROJECT YEAR PROJECT
YEAR
PROJECT C
A
B
(100,000)
(150,000)
(200,000)
For 4
5,000
For 1
8,750
For 1
137 daily
years
monthly
year
quartarly
year
For 2
22,500
2
60,000
year
semiannually
For 3
4583
3
247 daily
year
monthly
4
77,000
4
42,000
15,000
5
1000 monthly
Transcribed Image Text:PROJECT YEAR PROJECT YEAR PROJECT C A B (100,000) (150,000) (200,000) For 4 5,000 For 1 8,750 For 1 137 daily years monthly year quartarly year For 2 22,500 2 60,000 year semiannually For 3 4583 3 247 daily year monthly 4 77,000 4 42,000 15,000 5 1000 monthly
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