Owners of companies are considering the possibility of implementing

Pay with:
i agree with "Terms for Customers"
Sold: 1
Refunds: 0

Uploaded: 01.06.2013
Content: 30601071612583.zip (53,38 kB)


1.1. Owners of companies are considering the implementation of two mutually exclusive investment projects. Both projects are in some way connected with the acquisition of new equipment. As both projects have the following information:
Project 1 Project 2
Non-recurring costs for the purchase of equipment, mln. Rub. 100 000 60 000
Estimated net income (loss):
First year 29 000 18 000
The second year (1000) * (2000) *
Third year 2000 4000
Forecast / estimate the residual value of the equipment 7000 6000
* In brackets indicate negative values \u200b\u200b(loss)
The projected cost of capital: 10%. When calculating net profit, the company used the straight-line method of depreciation for 3 years. Depreciation should be considered in the cash flow. None of the proposed projects does not increase the need for enterprises to increase working capital.
1. Calculate the NPV and payback period and IRR (approximately) for both projects.
2. Justify the decision as to which project and why it should be passed owners of the company.

Additional information

6 pages


No feedback yet.
1 month 3 months 12 months
0 0 0
0 0 0
In order to counter copyright infringement and property rights, we ask you to immediately inform us at support@plati.market the fact of such violations and to provide us with reliable information confirming your copyrights or rights of ownership. Email must contain your contact information (name, phone number, etc.)