Invest in any or all of the four projects whose relevant cash flows are given in the following table. The firm has RM7,000,000 budgeted to fund these projects, all of which are known to be acceptable. Initial investment for each project is the same for all projects which is RM1,600,000. The rate of return for all projects is equivalent to 8%. Operating cash outflow Project X Year 1 Cash Outflow Project Y RM1,600,000 (for each project) RM 440,000 340,000 220,000 Operating Cash Inflows RM 140,000 180,000 250,000 260,000 1 2. 3. (110,000) ( 95,000 ) 105,000 4. 5. 6. 370,000 460,000 7. 220,000 388,000 8. 9. Use this table for PROJECT X and Y Period PVIF 8% 0.9259 0.8573 1 3 4 0.7938 0.7350 5 0.6806 6. 0.6302 7 0.5835 8 0.5403 0.5002 10 0.4632
Invest in any or all of the four projects whose relevant cash flows are given in the following table. The firm has RM7,000,000 budgeted to fund these projects, all of which are known to be acceptable. Initial investment for each project is the same for all projects which is RM1,600,000. The rate of return for all projects is equivalent to 8%. Operating cash outflow Project X Year 1 Cash Outflow Project Y RM1,600,000 (for each project) RM 440,000 340,000 220,000 Operating Cash Inflows RM 140,000 180,000 250,000 260,000 1 2. 3. (110,000) ( 95,000 ) 105,000 4. 5. 6. 370,000 460,000 7. 220,000 388,000 8. 9. Use this table for PROJECT X and Y Period PVIF 8% 0.9259 0.8573 1 3 4 0.7938 0.7350 5 0.6806 6. 0.6302 7 0.5835 8 0.5403 0.5002 10 0.4632
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
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