Calculate the NPV of two projects and suggest which one should be accepted assuming a...

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Accounting

Calculate the NPV of two projects and suggest which one should be accepted assuming a discount rate of 12%.


Project Alpha

Project Beta

Initial Investment

Rs. 40,000

Rs. 70,000

Estimated Life

4 Years

4 Years

Scrap Value

Rs. 3,000

Rs. 5,000

Years

1

2

3

4

Alpha

10,000

20,000

12,000

8,000

Beta

50,000

20,000

15,000

10,000

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