The director where you work asked you to provide feedback on each as a potential investment. Using the data provided, calculate the payback period and NPV of each. Based on your calculation which investment is the more profitable? Project Net Cash Flow Payback Period Seed Rate of Other Net NPV Capital (AED) Return Cash Flow (%) Year 1 Year 2 3000 Year 4 Year 3 Year 5 10000 2000 4000 5000 250000 2000 25000 25000 1000000 148000 200000 per year for 5 years 80000 17 10000 50000 60000 for 3 years 50000 25 1000 29000 35000 70000 120000 20000 80000 40000 20000 in year 6 and 5000 in уear 7

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 5TP: If you had $100,000 available for investing, which of these companies would you choose to invest...
icon
Related questions
Question

Please solve in clear way

The director where you work asked you to provide feedback on each as a potential investment. Using the data provided, calculate the payback
period and NPV of each. Based on your calculation which investment is the more profitable?
Seed
Capital
(AED)
10000
Rate of
Payback
Period
Project
Net Cash Flow
Other Net
NPV
Return
Cash Flow
(%)
Year 4
5000
1000000
Year 1
Year 2
Year 3
Year 5
5.
2000
3000
25000
4000
25000
B
250000
8
2000
148000
200000
per year
for 5 years
80000
17
10000
50000
60000 for
3 years
D.
50000
120000
25
1000
29000
20000
35000
70000
6
80000
40000
20000 in
year 6 and
5000 in
year 7
Transcribed Image Text:The director where you work asked you to provide feedback on each as a potential investment. Using the data provided, calculate the payback period and NPV of each. Based on your calculation which investment is the more profitable? Seed Capital (AED) 10000 Rate of Payback Period Project Net Cash Flow Other Net NPV Return Cash Flow (%) Year 4 5000 1000000 Year 1 Year 2 Year 3 Year 5 5. 2000 3000 25000 4000 25000 B 250000 8 2000 148000 200000 per year for 5 years 80000 17 10000 50000 60000 for 3 years D. 50000 120000 25 1000 29000 20000 35000 70000 6 80000 40000 20000 in year 6 and 5000 in year 7
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Data and information
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College