Question

Sufain Limited planning to invest in a project with an initial investment of Rs. 2,000,000. Following is the sales forecast for 5 years of useful life. Cost of Capital 8%.

Year Cash Flows (Rs.)

1 600,000

2 750,000

3 960,000

4 1,200,000

5 1,350,000

Required:

1.      Net present value (NPV)

2.      Internal Rate of Return (IRR)

3.      Simple payback period

4.      Discounted payback period

5.      Accounting Rate of Return

 

 

 

Answer 1

The answer to your question is provided below