Content preview from Fundamentals of Financial Management, Third Edition
- There are two investment projects, viz., X and Y. Each of them shows an initial investment of Rs 10,000. The discount rate is 12%. The cash flow in the first, second, third and fourth year is Rs 6500, Rs 3500, Rs 3000 and Rs 1000 respectively in Project X, and Rs 3500, Rs 3500, Rs 3500 and Rs 3000 respectively in Project Y.
Calculate NPV, Profitability index, IRR and MIRR.
- A project has the following cash flow:
Year
|
Amount (Rs)
|
0
|
−200
|
1
|
240
|
2
|
−70
|
3
|
90
|
The discount rate is 10%. Find out the NPV. Do you think that IRR would be a suitable evaluation technique in this respect?
- Calculate the initial investment if: the purchase price of the machine is Rs 20,000; installation expenditure is Rs ...
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ISBN: 9789332508170