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PT Motor & Cars has data for the project of establishing a factory as follows: - Value of initial investment Rp1.000.000.000,- - The investment period is five years. - Revenue Rp250.000.000 (first year), Rp300.000.000 (second year), Rp300.000.000 (third year), Rp350.000.000 (fourth year) and Rp400.000.000 (fifth year) - Required rate of return for project is 10% Please calculate for Net Present Value (NPV), Discounted Payback Period, Profitability Index

PT Motor & Cars has data for the project of establishing a factory as follows: - Value of initial investment Rp1.000.000.000,- - The investment period is five years. - Revenue Rp250.000.000 (first year), Rp300.000.000 (second year), Rp300.000.000 (third year), Rp350.000.000 (fourth year) and Rp400.000.000 (fifth year) - Required rate of return for project is 10% Please calculate for Net Present Value (NPV), Discounted Payback Period, Profitability Index

Essentials Of Investments
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
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PT Motor & Cars has data for the project of establishing a factory as follows:
- Value of initial investment Rp1.000.000.000,-
- The investment period is five years.
- Revenue Rp250.000.000 (first year), Rp300.000.000 (second year), Rp300.000.000 (third year),
Rp350.000.000 (fourth year) and Rp400.000.000 (fifth year)
- Required rate of return for project is 10%

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 accept or reject?

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