estimated cash flows before tax (CFBT) are? 10,000; 11,000; 14,000; 15,000 and v machinery. The project will cost 50,000 with life of 5 years and no salvage value. Question. 3. A company is considering an investment proposal to install a new tey rate of the company is 55% and it uses straight line method of depreciation. The 25,000 during years 1,2,3,4 and 5 respectively. Compute : (i) Average rate of return. (ii) NPV at 10% discount rate. (iii) Profitability Index at 10% discount rate. Note : Discount factors at 10% are 0.909, 0.826, 0.751, 0.683 and 0.621 for the

estimated cash flows before tax (CFBT) are? 10,000; 11,000; 14,000; 15,000 and v machinery. The project will cost 50,000 with life of 5 years and no salvage value. Question. 3. A company is considering an investment proposal to install a new tey rate of the company is 55% and it uses straight line method of depreciation. The 25,000 during years 1,2,3,4 and 5 respectively. Compute : (i) Average rate of return. (ii) NPV at 10% discount rate. (iii) Profitability Index at 10% discount rate. Note : Discount factors at 10% are 0.909, 0.826, 0.751, 0.683 and 0.621 for the

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 11P

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