QUESTION-04XYZ Company Ltd wants to invest Tk. 5 lacs in a new project. The duration of the project is 5 Years. TheCompany uses a straight-line method of depreciation. The Company tax rate is 40% and has no salvagevalue. The cash flows of the company are BDT 120000, BDT 150000, BDT 130000, BDT 100000, andBDT 180000 respectively. If the cost of capital is 8%, then calculate the IRR of the project.

Investment in new project = 500,000 Time period = 5 years Tax rate = 40% Cost of capital = 8%

Answered: XYZ Company Ltd wants to invest Tk. 5…

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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