rm's cost of capital is 10%.It is considering two mutually exclusive projects X and Y.The details are given below: Project X Project Y PV factor at 10% Investments Rs.1,40,000 Rs.1,40,000 - Net cash inflows: Years 1 20,000 1,20,000 0.909 2 40,000 80,000 0.826 3 60,000 40,000 0.751 4 90,000 20,000 0.683 5 1,20,000 20,000 0.621 3,30,000 2,80,000 Calculate payback period and net present value of each project.
A firm's cost of capital is 10%.It is considering two mutually exclusive projects X and Y.The details are given below:
Project X Project Y PV factor at 10%
Investments Rs.1,40,000 Rs.1,40,000 -
Net
Years
1 20,000 1,20,000 0.909
2 40,000 80,000 0.826
3 60,000 40,000 0.751
4 90,000 20,000 0.683
5 1,20,000 20,000 0.621
3,30,000 2,80,000
Calculate payback period and
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