power point
iikotu
assignment_4_step_2.xlsxSheet1
| Amount in Million $ | |||||
| Year | Application I | Cumultive cash flows | Application II | Cumultive cash flows | |
| 0 | -1.5 | -1.5 | -1 | -1 | |
| 1 | 0.8 | -0.7 | 0.5 | -0.5 | |
| 2 | 0.7 | 0 | 0.24 | -0.26 | |
| 3 | 0.3 | 0.3 | 0.6 | 0.34 | |
| NPV @ 15% | ($0.08) | $0.01 | |||
| IRR | 11% | 16% | |||
| Payback | 2.00 | 2.43 | |||
| Q7 | If payback period is 2 years then application I should be selected | ||||
| Q8 | Application II should be selecteda sit has positive NPV | ||||
| Q9 | Application II should be selecteda sit has higher IRR |
