Corporate FInance Assignment/ Professional Essay Writers
1. SONY Corporation is considering signing a one year contract with one of two computer-based marketing firms. Although one is more extensive, it offers a more extensive program and thus will provide higher after-tax net cash flows. Assume these two options are mutually exclusive and that the required rate of return is 12%. Given the following after-tax net cash flows.
Year Option-A Option-B
0 – 10000 AED 40000 AED
1 20,000 AED 70000 AED
1. Calculate the net present value
2. Calculate the profitability index
3. If there is no capital rationing constraint, which project should be selected?
Note: Answers Should be in Word or Excel. Get Finance Help Today