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+--- Thread: Find Proposal on basis of NPV techniques (/thread-find-proposal-on-basis-of-npv-techniques)
Find Proposal on basis of NPV techniques - vickygupta - 09-06-2011
Krishna Ltd. is considering an expansion of the 20
installed capacity of one of its plant at a cost of
Rs. 35,00,000. The firm has a minimum required
rate of return 12%. The following are the expected
cash inflows over next 6 year after which the plant will be scrapped away for nil value.
Cash PVF of Rs.
Year inflows (Rs.) 1/-at 12%
1 10,00,000/- 0.893
2 10,00,000/- 0.797
3 10,00,000/- 0.712
4 10,00,000/- 0.636
5 5,00,000/- 0.567
6 5,00,000/- 0.507
Consider the proposal on the basis of the NPV techniques.