User Account

All Pages

NPV, Project Management

Assignment Help:


A brilliant UTM student at the end of his graduation is in presence of two opportunities and has to choose between them. One is a job offer with a salary of Rs15,000 per month (with no other benefits except for one month end of year bonus). It is expected that the monthly salary will increase on average by 10% every year for the first 5 years of his career. His personal costs amount to Rs5,000 per month and is expected to increase by 5% every year for the next 5 years. The next opportunity is the possibility of creating his own call centre which promises the following benefits: a steady revenue stream of Rs100,000 per month with an increase of 30% every year.

Operational costs for the call centre are about Rs65,000 per month and will increase by 10% each year for the first 5 years. It is assumed that an investment of Rs500,000 will be required in the second case which will be granted as an interest free loan by the Government with annual repayments of Rs100,000 over the next 5 years.

(a) Summarise the net cash flows for each opportunity for a period of 5 years. For simplification purposes, ignore the effect of taxes (both corporate and income tax).

(b) Calculate the Net Present Value for each opportunity. Use 10% as discount rate.

(c) Which opportunity is better from the financial point of view?

Related Discussions:- NPV

What is a project plan and what does it involve, Q. What is a project plan ...

Q. What is a project plan and what does it involve? A well incorporated project plan is the primary tool for effective coordination of the work and for tracking and steering pr

Explain the development phase in the project management, Explain about the ...

Explain about the development phase in the project management. Development phase During the development phase, everything that will be needed to implement the project is

Describe the components of resourcing strategy, Question 1: Describe th...

Question 1: Describe the need for manpower planning Define Manpower planning. Need for manpower planning Question 2: Show the benefits of carrying out manpo

Steps of project management, mention steps of project management

mention steps of project management

Audits, A udits Audits are independent examinations to determine wheth...

A udits Audits are independent examinations to determine whether processes and procedures achieve the specified objective. They are an essential tool to identify problem areas

What is the terminology used in mpmm, MPMM has adopted best practice termin...

MPMM has adopted best practice terminology to make sure that organizations communicate effectively whilst managing projects. Within the Glossary you will search definitions for all

Aspects to good project management, Q. Is that all there is to project mana...

Q. Is that all there is to project management? A. That is by no way all. There are several aspects to good project management that require attention. In summary these perhaps

Policy statement, Policy Statement Policy statements are necessary to c...

Policy Statement Policy statements are necessary to clarify intentions, describe the policy administration process and define policy particulars. Policy statements protect an o

Risk management techniques and project timeplan creation, I have an assignm...

I have an assignment to submit in the above mentioned topics. Please respond me as soon as possible with the required info and i will send you the assignment details after our mutu

Why do projects always seem to take longer than expected, Q. Why do project...

Q. Why do projects always seem to take longer than expected? Usually this is because it is relatively easy to assign time allowances to all the activities that have been though

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd