Academic MBA Question:
Case Study: Mr. Mehta works as a Management Consultant in XYZ Ltd and his role involved analyzing capital investment projects. His manager asked him to analyze project X which involved capital investments of 10,00,000 and the cost of capital of 12%. The projects net cash flows are as follows:
| Years | 1 | 2 | 3 | 4 | 5 |
| Cash Inflow | 20,000 | 30,000 | 40,000 | 45,000 | 50,000 |
Calculate:
- Net Present Value of the project and suggest whether project is to be accepted or not.
- Internal rate of return and suggest whether project is to be accepted or not
Academic Assignment Answer:
