QRS Enterprises is considering two mutually exclusive projects. The company's cost of capital is 10%...
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Accounting
- QRS Enterprises is considering two mutually exclusive projects. The company's cost of capital is 10% and the tax rate is 28%. Other information regarding both projects is as follows:
Particulars | Project A | Project B |
Cost of Project | 2,200,000 | 2,700,000 |
Project Duration | 6 years | 6 years |
Annual Revenue (before Tax & depreciation) | 600,000 | 750,000 |
- Depreciation is charged on a straight-line basis. You are required to calculate: a. NPV b. Payback period c. Profitability index d. IRR
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