Project s has a cost of 10000 and the project life is 5, Ask an Expert

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Project S has a cost of $10,000 and the project life is 5 years. The cash inflow for Project S in the first year is estimated to be $3000. The growth rate in cash flows for Project S is 5 per cent per year for the remaining four years. Project L costs $25000 and the project life is also 5 years. The cash inflow for Project L in the first year is estimated to be $7400. The growth rate in cash flows for Project L is 4 per cent per year for the remaining four years. The inflation rate is 2 per cent. Find the NPV, IRR and PI for these two projects. R= 6%.

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Financial Management, Finance

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