Question No.2: Anurag Limited with capital budgeting constraint of Rs. 350,000, is trying to decide which of the following proposals should be undertaken by it? All investment project are mutually independent (do not affect one another cash flow). The list of the investment, along with the Initial cahs outlay and NPV of the projected cash flows is as follows: Investment Outlays NPV A Rs.50,000 Rs. 30,000 B 120,000 90,000 C 160,000 100,000 D 110,000 150,000 E 90,000 100,000 Which investment should be acquired by the company? Hint: Using Profitability Index.
Question No.2: Anurag Limited with capital budgeting constraint of Rs. 350,000, is trying to decide which of the following proposals should be undertaken by it? All investment project are mutually independent (do not affect one another cash flow). The list of the investment, along with the Initial cahs outlay and NPV of the projected cash flows is as follows: Investment Outlays NPV A Rs.50,000 Rs. 30,000 B 120,000 90,000 C 160,000 100,000 D 110,000 150,000 E 90,000 100,000 Which investment should be acquired by the company? Hint: Using Profitability Index.
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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Question No.2: Anurag Limited with capital budgeting constraint of Rs. 350,000, is trying to decide which of the following proposals should be undertaken by it? All investment project are mutually independent (do not affect one another cash flow). The list of the investment, along with the Initial cahs outlay and
|
Investment |
Outlays |
NPV |
|
A |
Rs.50,000 |
Rs. 30,000 |
|
B |
120,000 |
90,000 |
|
C |
160,000 |
100,000 |
|
D |
110,000 |
150,000 |
|
E |
90,000 |
100,000 |
Which investment should be acquired by the company? Hint: Using Profitability Index.
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