Question
The following information is provided:
Discount rate: 10% January 2015 Semester 7
Description Project A Project B Project C Investment (Cash Outflow) £60,000 £65,000 £45,000
Year 1- Cash Inflow £20,000 £24,750 £20,000
Year 2- Cash Inflow £18,500 £24,750 £15,000
Year 3- Cash Inflow £26,000 £24,750 £12,500
Year 4- Cash Inflow £32,500 £24,750 £25,000
Requirement: (
AC3.3) You are required to assess the viability of a project using investment appraisal techniques. Briefly explain which project would you recommend and why? (a) Net present value (NPV) (b) Payback Period (years
Solution Preview
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.