There are two projects A and B. The initial capital outlay of A and B are Rs. 1,35,000 and Rs. 5,40,000 respectively. There will be no scrap value at the end of the life of both the projects. The Cost of Capital is 16% The company has to choose one project out of the two. The Cash inflows as under: Year Project A (Rs.) Project B (Rs.) 1 — 60,000 2 30,000 84,000 3 1,32,000 96,000 4 84,000 1,02,000 5 84,000 90,000 You are required to calculate and comment for each project: 6 N (a) Discounted payback period (b) Profitability index and (c) Net present value
FROM the data given in Table, set up a compressed monetary record as at March 31, 2002. Working notes: Current proportion = CA/CL = 2.5, that is, 2.5/1.0 Working capital = CA – CL,...