Project B's initial outlay is RM1,800,000 excluding the purchase of fixed asset of RM250,000. The cash flows are RM440,000 in year one, RM1,000,000 in year two, RM560,000 in year three, RM450,000 in year four and the final year is RM200,000. At the termination of the project, 50% of the fixed asset value can be recovered. Assume cost of project of 6.23%. The initial outlay is RM The total present value is RM_ project's Pl The terminal value is RM The project's PP is period. The project's DPP is Total future value is RM The project's IRR is %. The project's MIRR is period. The project's NPV RM .. The %. The project's EAA is RM Based on EAA, the company should accept project B as the total will be more. True False Overall assessment based on Capital Budgeting Techniques, Project B should accepted. True False
Project B's initial outlay is RM1,800,000 excluding the purchase of fixed asset of RM250,000. The cash flows are RM440,000 in year one, RM1,000,000 in year two, RM560,000 in year three, RM450,000 in year four and the final year is RM200,000. At the termination of the project, 50% of the fixed asset value can be recovered. Assume cost of project of 6.23%. The initial outlay is RM The total present value is RM_ project's Pl The terminal value is RM The project's PP is period. The project's DPP is Total future value is RM The project's IRR is %. The project's MIRR is period. The project's NPV RM .. The %. The project's EAA is RM Based on EAA, the company should accept project B as the total will be more. True False Overall assessment based on Capital Budgeting Techniques, Project B should accepted. True False
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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Transcribed Image Text:Project B's initial outlay is RM1,800,000 excluding the purchase of fixed asset of RM250,000. The cash flows are RM440,000 in
year one, RM1,000,000 in year two, RM560,000 in year three, RM450,000 in year four and the final year is RM200,000. At the
termination of the project, 50% of the fixed asset value can be recovered. Assume cost of project of 6.23%. The initial outlay is RM
The total present value is RM_
project's Pl
The terminal value is RM
The project's PP is period. The project's DPP is
Total future value is RM
The project's IRR is
%. The project's MIRR is
period. The project's NPV RM
.. The
%. The project's EAA is RM
Based on EAA, the company should accept project B as the total will be more. True False Overall assessment
based on Capital Budgeting Techniques, Project B should accepted. True False
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