FGJ Corporation is planning to invest in one of two projects. The company's cost of...
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FGJ Corporation is planning to invest in one of two projects. The company's cost of capital is 11% and the tax rate is 27%. Project details are given below:
Particulars | Project E | Project F |
Cost of project | 18,00,000 | 21,00,000 |
Expected life | 4 years | 4 years |
Annual Income (before Tax & Depreciation) | 5,00,000 | 6,25,000 |
Depreciation is charged on a straight-line basis. You are required to calculate: a. Internal Rate of Return (IRR) b. NPV c. Payback period
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