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Academic MBA Question:

Assignment MBA Question – Alok was working as the project manager and had to decide which one of the projects has to be selected on the basis of Net Present Value if the discounting factor in the case of both projects is 10% and initial investment required is Rs 5,00,000. The cash inflows of both the projects are

Year       Project A             Project B

1              Rs. 75,000            Rs. 40,000

2              Rs. 1,25,000        Rs. 75,000

3              Rs. 2,00,000        Rs. 1,00,000

4              Rs. 2,25,000        Rs. 1,50,000

5              Rs. 2,50,000        Rs. 2,25,000

 

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