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Net PRresnt value- Citron Industries has a project with the following projected cash flow Initial cost, year 0: 240,000 Cash flow year  one: Rs 25,000 Cash flow year  two: Rs 75,000 Cash flow year  three: Rs 150,000 Cash flow year  four: Rs 150,000 a. using a 10% discount rate for this project and the NPV model shpuld this project is accepted or rejected? b. Using 15 % discount rate? c. Using 20 % discount rate?

Net PRresnt value- Citron Industries has a project with the following projected cash flow Initial cost, year 0: 240,000 Cash flow year  one: Rs 25,000 Cash flow year  two: Rs 75,000 Cash flow year  three: Rs 150,000 Cash flow year  four: Rs 150,000 a. using a 10% discount rate for this project and the NPV model shpuld this project is accepted or rejected? b. Using 15 % discount rate? c. Using 20 % discount rate?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Net PRresnt value- Citron Industries has a project with the following projected cash flow

Initial cost, year 0: 240,000

Cash flow year  one: Rs 25,000

Cash flow year  two: Rs 75,000

Cash flow year  three: Rs 150,000

Cash flow year  four: Rs 150,000

a. using a 10% discount rate for this project and the NPV model shpuld this project is accepted or rejected?

b. Using 15 % discount rate?

c. Using 20 % discount rate?

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