PT ABC has data for the project of establishing a factory as follows : -Value of initial investment Rp 2.000.000,- -The investment period is four years. -Revenue Rp 500.000.000 (first year), Rp 600.000.000 (second year) , Rp 700.000.000 (third year) , Rp 800.000.000 (fourth year). -Required rate of return for project is 8%. Please calculate for Net Present Value(NPV) , Discounted Payback Period, Profitability Index, and Internal Rate of Return (IRR). Give your analysis whether the project is accpeted or rejected?
PT ABC has data for the project of establishing a factory as follows : -Value of initial investment Rp 2.000.000,- -The investment period is four years. -Revenue Rp 500.000.000 (first year), Rp 600.000.000 (second year) , Rp 700.000.000 (third year) , Rp 800.000.000 (fourth year). -Required rate of return for project is 8%. Please calculate for Net Present Value(NPV) , Discounted Payback Period, Profitability Index, and Internal Rate of Return (IRR). Give your analysis whether the project is accpeted or rejected?
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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PT ABC has data for the project of establishing a factory as follows :
-Value of initial investment Rp 2.000.000,-
-The investment period is four years.
-Revenue Rp 500.000.000 (first year), Rp 600.000.000 (second year) , Rp 700.000.000 (third year) , Rp 800.000.000 (fourth year).
-Required
Please calculate for
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