# FM - C The packback period os Project F is less than...

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Ch No.8 Q.No. 21 Cash Flows Discount Present values Cummula Year Project F Project G F G F 0 -150000 -240000 1 -150000 -240000 -150000 1 80000 60000 0.9091 72728 54546 -77272 2 60000 70000 0.8264 49584 57848 -27688 3 75000 90000 0.7513 56347.5 67617 28659.5 4 60000 140000 0.6830 40980 95620 69639.5 5 50000 120000 0.6209 31045 74508  100,684.50  Net Present Values  100,684.50   110,139.00  a)  Project F Payback Period 2 + (28659.50/150,000)= 2.19 Project G Payback Period 3 + (35631/240000)= 3.15 b)  Net Present Value F  100,684.50  Net Present Value G  110,139.00

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Unformatted text preview: C) The packback period os Project F is less than Project G so it may be taken , but NPV of Pro So it should be worthwile to take Project G. Ch No.9 Q.No. 10 Year Returns (x-x)^2 1-0.16 0.06 2 0.21 0.01 3 0.04 4 0.16 0.01 5 0.19 0.01 0.44 0.09 Aritmathic Average= 0.09 8.80% Variance= 0.02 S.D. 15.35% [email protected]% lative P.V. G-240000-185454-127606-59989 35631 110,139.00 roject G is more than Project F...
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