Analysis of Capital Budgeting Decisions Assignment Help – Homework Help
Struggling with problems under determining Analysis of Capital Budgeting Decisions? Do you need financial management expert’s assistance for your Analysis of Capital Budgeting Decisions homework –assignment? We at Expertsmind.com offer Analysis of Capital Budgeting Decisions assignment help, Analysis of Capital Budgeting Decisions homework help and financial management projects help with best support by online for 24*7 hours from qualified and experienced financial management experts. Get quick help with instant financial management tutors in capital budgeting decisions problems.
Analysis of Capital Budgeting Decisions
1. 12600, 9774, 4518, 3400, 0
2. 13534, 19.91%.
3. 14.98%
4. 2325
5. NPV 135, 103, 67, IRR 14.98%, 15.11%, 15%
6. 17.76%, No
7. 11.99%, 7.69%, Project (X)
8. NPV = 1700, 2436 IRR = 14.98%, 17% Project B
9. Yes, NPV = 1304, IRR (cost) = 12%
10. (6587), 13.01%
11. Project A = 7784, 5712, 3977, 1264, (731), (2236), IRR=25.99%
Project B = 5830, 4690, 3696, 2054, 756, (295), IRR = 36.98%
Fisher's intersection rate F(is)= 12.23%., If discount rate is less than 12.23%, project A will be selected otherwise Project B.
12. Project X = 109, 38, 0, (23), (45), (123), IRR = 8.03%
Project Y = 210, 112, 61, 29, 0, (102), IRR = 12%
Fisher's intersection rate F(is) = 30.56%.
NPV of incremental investment (y-x) = 101, 74, 61, 52, 45, 21.
If discount rate is more than 30.56%, project X will be selected.
13. NPV = 2273, 4882, IRR= 20%, 15.02%.
Project I will be selected as AEV is more as compare to proposal II.
14. (i) 3, 3, 3, 3
(ii) All the projects have same payback. No.
(iii) 3.20, 3.3, 3.13, 3.18
(iv) 544, 481, 358, 335 Project A.
15. 20%, 13%.
16. 50%, 66.67%, 6333
17. 0%, 100%, 11
18. 4241, 13%, 1456, No
19. 14025-6
20. 0%, -50%, NO, NPV (96)
Complex Investment Decisions
1. AEV = 77321, 83214, Project X
2. AEV = 89385, 68824, Project B
3. AEV = 12813, 15329, Machine Q
4. AEV = 41503, 60000, Old Machine
5. AEV = 43356, 48592, after 3 years
6. AEV = 12664, 10881, Machine X. Tax shield taken at beginning
of the year.
12829, 10881, Machine X. Tax shield taken at the end of the year.
7. PV of outflow = New Machine = 285000
Old Machine = 450000
• Assumptions: There are no fixed costs.
50% capacity for the period during March-August
No taxation
Cost of Capital 10%
8. NPV = 65355
If inflation is accounted for, in that case also NPV of the project will remain same. As nominal cash flow are discounted at nominal discount rate and real cash flows are discounted at real discount rate.
9. NPV = (99155)
10. NPV = (1487601). Answer will be same if project is analyzed in real terms.
11. AEV = 22598, 19314 Project M.
12. NPV = 750, 550
PI = 1.25, 1.14. Project L
13. DCEF, NPV = 43000, assuming projects are indivisible.
14. TP, NPV = 330, assuming projects are indivisible.