Cash inflows of two projects A and B are given below Assume-01229
This subjective question is related to the book/course
vu eng101 English Comprehension.
It can also be found in
vu eng101 Mid Term Solved Past Paper No. 1.
Question 1: Cash inflows of two projects A and B are given below. Assume that all cash flows are received at the end of the period.
| Period | Project A | Project B |
| 1 | Rs. 10,000 | Rs. 5,000 |
| 2 | Rs. 15,000 | Rs. 12,000 |
| 3 | Rs. 20,000 | Rs. 25,000 |
| 4 | Rs. 35,000 | Rs. 30,000 |
| 5 | Rs. 40,000 | Rs. 35,000 |
Required:
- (i) Calculate the Present Value of cash flow stream of project A if there is a discount rate of 12%.
- (ii) Compute the Future Value of cash flow stream of project B at the end of year 5 with a compound annual interest rate of 10%.
