The status of cash flow for four projects is given in the following table. (Negative figures at the end of year 0 represent initial investment). Cash flow for four projects (Figures are end of year total in rupees) Year Project 1 Project 2 Project 3 Project 4 0 -100,000 -1,000,000 -100,000 -120,000 1 10,000 200,000 30,000 30,000 2 10,000 200,000 30,000 30,000 3 10,000 200,000 30,000 30,000 4 20,000 200,000 30,000 30,000 5 100,000 300,000 QP23EP1 290 | 17-06-2023 08:52:24 | 1 30,000 75,000 Calculate Net Profit (NP), Payback Period (PP), Return on Investment (ROI) and Net Present Value (NPV) on the basis of above table. You may assume discount rate to be as 10%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question
The status of cash flow for four projects is given in the following table. (Negative
figures at the end of year 0 represent initial investment).
Cash flow for four projects (Figures are end of year total in rupees)
Year
Project 1
Project 2
Project 3
Project 4
0
-100,000
-1,000,000
-100,000
-120,000
1
10,000
200,000
30,000
30,000
2
10,000
200,000
30,000
30,000
3
10,000
200,000
30,000
30,000
4
20,000
200,000
30,000
30,000
5
100,000
300,000
QP23EP1 290 | 17-06-2023 08:52:24 | 1
30,000
75,000
Calculate Net Profit (NP), Payback Period (PP), Return on Investment (ROI) and Net
Present Value (NPV) on the basis of above table. You may assume discount rate to be
as 10%.
Transcribed Image Text:The status of cash flow for four projects is given in the following table. (Negative figures at the end of year 0 represent initial investment). Cash flow for four projects (Figures are end of year total in rupees) Year Project 1 Project 2 Project 3 Project 4 0 -100,000 -1,000,000 -100,000 -120,000 1 10,000 200,000 30,000 30,000 2 10,000 200,000 30,000 30,000 3 10,000 200,000 30,000 30,000 4 20,000 200,000 30,000 30,000 5 100,000 300,000 QP23EP1 290 | 17-06-2023 08:52:24 | 1 30,000 75,000 Calculate Net Profit (NP), Payback Period (PP), Return on Investment (ROI) and Net Present Value (NPV) on the basis of above table. You may assume discount rate to be as 10%.
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