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    Afirm is considering replacing a computer system with a new one.
    Purchase price of new computer is Rs. 80,000.00 and
    Itsinstallation costs are Rs. 1,000.00.
    Thecash flow from the sale of the old computer is expected to be Rs. - 20,000.00.
    The CFAT, after the installation of the newcomputer is expected to be Rs. 15,000.00
    Eachyear for five years.
    T he Salvage value at the end of 5 years hasbeen calculated as Rs. 20,000.00.
    Shouldthe proposal of replacing the computer be accepted on the basis of?
    NPV as decision criteria discounted @ 12%.
    What is Profitability Index (P.I) is used asdecision criteria?

    Discuss the role of IRR, NPVR and paybackperiod as alternative Investment criteria.
    A perfect requires an investment of $ 2.0million at the end of tenth year.
    Thecapital cost (discount rate) of the project financing is estimated to be 10 %a)
    Whatis the payback period?

    b)Using NPV as appraisal criterion, would your accept or reject the period
    c) IfIRR were used as decision criterion, would you get the same result as in
    (b)? Why or Why not?
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    plzzzz any one help me urgently
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    (Original post by azmay)
    plzzzz any one help me urgently
    Post it on the economics sub - forum. And don't expect an instant reply. Try to understand as much of the question as you can while you wait for the explanation
 
 
 
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