Page 112 - BOSC-P Vodafone Apr 2017
P. 112

Discounted Cash Flow Exercise



         Capital Investment Evaluation





             Working alone or with a partner, evaluate the following three

                                                      capital investments


                                                      Projects 1, 2 and 3.






          For each of the capital investments, answer the following questions:


          • Will the investment cover capital costs?

          • What is the expected internal rate of return?


          • What is the payback period?
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