logo

Assignment on Finance - Capital Budgeting

This assignment covers topics related to investment analysis, cost of debt and inflation.

9 Pages896 Words13 Views
   

Added on  2022-08-17

Assignment on Finance - Capital Budgeting

This assignment covers topics related to investment analysis, cost of debt and inflation.

   Added on 2022-08-17

ShareRelated Documents
Capital Budgeting
A
Assignment on Finance - Capital Budgeting_1
FINANCE 1
Part 1
A.
NPV, IRR and Simple Rate of Return
Project A
4%
Years 0 1 2 3 4
Initial Investment -180000
Annual cash flows 53000 53000 53000 53000
Net cash flows -180000 53000 53000 53000 53000
DCF 1.00 0.96 0.92 0.89 0.85
Present Value of Cash
Flows -180000
50961.5
4
49001.4
8
47116.8
1
45304.6
2
Simple Rate of Return -0.29 -0.29 -0.29 -0.29
Average 29%
NPV 192384.45
IRR 3%
Assignment on Finance - Capital Budgeting_2
FINANCE 2
Payback Period
Project A
Years
Net Cash
Flows CF
0 -180000
-
180000
1 53000
-
127000
2 53000 -74000
3 53000 -21000
4 53000 32000
32000
Payback
Period 3.60
Project B
Years
Net Cash
Flows CF
0 -180000
-
180000
1 40000 -
Assignment on Finance - Capital Budgeting_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment on Project Management & Financial
|7
|932
|9

Investment Appraisal Assignment
|15
|1817
|41

Investment Appraisal Techniques and their Limitations
|5
|784
|499

Business Decision Making and Financial Analysis of TESCO Plc
|11
|2109
|318

Financial Management: Investment Appraisal and Market Efficiency
|14
|3924
|90

Managing Finances and strategic Decision Making Question Answer 2022
|13
|2902
|11