Name: Mohsin Bashir

Reg: 20326
Subject: Financial Strategy & Policy
Computation of Discounted Payback Period:

Discounted Payback for Thar project:

Discounted payback period = 2 years+(−1,636.20/2238.65) = 2.73 years

Discounted Payback for Sahiwal project:

Discounted payback period = 3 years+ (−1,334.18/ 2,368.94) = 3.56 years

Part 3
The project with the highest NPV must be chosen as it creates the highest value for the firm.
Hence Project THAR must be selected as it's having the highest NPV we can also see THAR is
having better IRR MIRR and Discounted payback period than Project SAHIWAL.

Part 4
If projects are independent, then the projects with Positive NPV must be chosen.
Hence both THAR and SAHIWAL can be selected.