Solution
Khushboo answered on
Mar 13 2021
Solution 1
Cost of capital 15%
Project Diamond Project Coral Project Copper Present value factor@ 15% Present value Project Diamond Present value project coral Present value project coppe
Initial outlay ($2,000,000) ($2,200,000) ($1,300,000) 1 ($2,000,000) ($2,200,000) ($1,300,000)
Inflow year $ $ $
1 250,000 350,000 140,000 0.870 $217,391 $304,348 $121,739
2 310,000 410,000 150,000 0.756 $234,405 $310,019 $113,422
3 450,000 520,000 160,000 0.658 $295,882 $341,908 $105,203
4 520,000 480,000 140,000 0.572 $297,312 $274,442 $80,045
5 600,000 510,000 150,000 0.497 $298,306 $253,560 $74,577
6 520,000 610,000 160,000 0.432 $224,810 $263,720 $69,172
7 540,000 625,000 125,000 0.376 $203,006 $234,961 $46,992
8 710,000 650,000 130,000 0.327 $232,100 $212,486 $42,497
9 650,000 400,000 150,000 0.284 $184,771 $113,705 $42,639
10 700,000 190,000 70,000 0.247 $173,029 $46,965 $17,303
IRR 19% 17% 1.09%
Net Present value $361,012 $156,114 ($586,411)
Solution 2
Statement of Financial Performance Year 2019 Year 2018 Year 2017 Year 2016
for the Year Ended 31 March $ $ $ $
Net Sales 720,000 680,000 700,000 810,000
Less: Cost of goods sold 420,000 560,000 610,000 629,000
Gross...