Case Study on NPV, IRR and BCR calculation
Case Study on NPV, IRR and BCR calculation Facilitator- Dr. Engr. Md. Abdur Rashid Director (Research & Publication) NAPD Google Scholar ORCID Case Study 1 Mr. Raihan wants to invest 1000000 takas. Mr. Raihan is going to purchase 3 years’ savings certificate. Study shows that yearly profit of Al Arafa Bank is 10.00%. On the other hand, savings certificate interest rate is 9%. Calculate NPV, IRR and BCR. Give investment decision on 3 years’ savings certificate. Calculate- 1. Yearly cash flow considering year 3 get return of original investment taka 10,00000 2. NPV 3. IRR 4. BCR 5. Give investment decision C Calculation: Yearly Cash Flow Initial Investment (Year 0): –1,000,000 taka Yearly Interest (9% of 1,000,000): 90,000 takas per year Return of Principal at Year 3: 1,000,000 taka So the cash flow stream is:...