The net cash flows of two alternative projects that require an investment of 120,000 TL are as follows. 40% of the financing of the investment will be provided with a 20% loan and the remaining part will be provided with 35% cost equity. Make the investment decision by analyzing the projects according to the following methods. Explain with the reasons a) Discounted repayment period b) Net present value method c) Profitability index (NPV) d) Internal rate of return method (kA: 80%; kU 90%)
The net cash flows of two alternative projects that require an investment of 120,000 TL are as follows. 40% of the financing of the investment will be provided with a 20% loan and the remaining part will be provided with 35% cost equity. Make the investment decision by analyzing the projects according to the following methods. Explain with the reasons a) Discounted repayment period b) Net present value method c) Profitability index (NPV) d) Internal rate of return method (kA: 80%; kU 90%)
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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The net cash flows of two alternative projects that require an investment of 120,000 TL are as follows. 40% of the financing of the investment will be provided with a 20% loan and the remaining part will be provided with 35%
a) Discounted repayment period
b)
c) Profitability index (NPV)
d)
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