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KLM Enterprises is evaluating two exclusive projects. The company's cost of capital is 12% and the tax rate is 30%. The details are as follows:
Particulars | Project G | Project H |
Cost of project | 20,00,000 | 24,00,000 |
Expected life | 6 years | 6 years |
Annual Income (before Tax & Depreciation) | 6,00,000 | 7,50,000 |
Depreciation is charged on a straight-line basis. You are required to calculate: a. Internal Rate of Return (IRR) b. NPV c. Payback period
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