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A project is expected to renerate CFAT of 356000, other data relating to project are as follow:-- Life 6 years, Risk free rate =8%, Certainity factor =0.9, Tax Rate =35%, Initial investment 1200000, Depreciation method SLM. Calculate IRR of project using 8% and 16%

April 10, 2020

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Renovation of B limited will cost 10Lakh, , the probability and CFAT for following 5 events is as follow :- E1:-0.1, 200000; E2:- 0.2, 300000, E3:- 0.4, 400000, E4:- 0.2, 500000, E5:- 0.1, 800000. Company estimate that the probability distribution of incremental CFAT will exist for 4 years. the company cost of capital is 10%. what is project expected NPV

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T Limited is considering project with followin cash floww , cost of plant 70000, year 1:- running cost 2000, saving 60000; Year 2:- running cost 25000, saving 70000. The cost of capital is 8 %. PVAF .9267, PVAF :- 0.857. calculate sensitivity at change in level of running cost

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