Consider the following Mutually exclusive projects X, Y
and Z with the following cash flow streams. The cost of
capital for both the projects is 15%.
Year (t) Cash flow X Cash flow Y Cash flow Z
0 -100,000 -120,000 -110,000
1 30,000 20,000 15,000
2 30,000 22,000 40,000
3 30,000 25,000 35,000
4 30,000 20,000 20,000
5 30,000 40,000 25,000
6 30,000 50,000 22,000
7 30,000 10,000 20,000
â Evaluate the above projects using the following
criteria or techniques.
a. Net present value (NPV)
b. Internal rate return (IRR)
c. Payback period (PBP)
d. Discounted payback period (DPBP
Jan 22, 2025