Description
300 Level Operations Management In Educational Practice exam questions and detailed answers. Download the answers in document format. Correct, detailed, and straightforward answers.
Questions:
Table below shows six profit-oriented projects established by a higher institution in Oyo State with capital cost flow and benefits derivable from the projects.
Table showing flow of Capital Cost and Benefits from six projects
| Year | A | B | C | D | E | F |
|---|---|---|---|---|---|---|
| 0 | -1000.00 | -1000.00 | -1000.00 | -1000.00 | -1000.00 | -1000.00 |
| 1 | 300.00 | 400.00 | 400.00 | 200.00 | 500.00 | 300.00 |
| 2 | 300.00 | 300.00 | 300.00 | 200.00 | 500.00 | 300.00 |
| 3 | 400.00 | 300.00 | 300.00 | 200.00 | 500.00 | 300.00 |
| 4 | 400.00 | 400.00 | 400.00 | 200.00 | 700.00 | – |
| 5 | 300.00 | 300.00 | 300.00 | 400.00 | – | – |
| 6 | – | – | 300.00 | 1000.00 | – | – |
With this information and returns/benefits in Naira terms, determine:
5a The Payback for each project
5b Given the bank interest rate of 10%, determine the Net Present Value (NPV) for Projects A, B, and F
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