
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A pharmaceutical company developed four investment plans. The initial investment and the corresponding annual cash flows of the four investment plans for consecutive 5 years are shown in the following Table Q1.
Project Name |
I |
II |
III |
IV |
Initial Investment (OMR) |
44000 |
62000 |
100000 |
109000 |
Annual |
10000 |
22000 |
27000 |
44000 |
Identify the best project and decide the ranking based on the following profitability methods.
a) Average
b) Payback period.
c)
d) Benefit to cost ratio with discounting rate at 11%
e)
only solve d and e please clear with details and conclusion
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