Capital budgeting decisions in npv and irr

Assignment Help Corporate Finance
Reference no: EM13196727

1. There are other measures used in capital budgeting decisions other than NPV and IRR. What are those measures? What are their weaknesses as compared to NPV/IRR? (After answers, ask a follow-up question).

Capital Budgeting: Metrics used in Capital Budgeting (250 words)

2. Are financial metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR) superior to Return on Investment (RoI), Return on Assets (RoA), and Payback Period (PBP)? (After answers, ask a follow-up question).  Why or why not?

Reference no: EM13196727

Questions Cloud

State what was the unknown volume : If the final temperature is 23.5 deg C, what was the unknown volume? (no heat was lost to the surroundings, d of water is 1 g/mL)
Define what kinetic energy must the electrons : What kinetic energy must the electrons have in order to resolve a protein molecule that is 5.10 nm in diameter? Take the mass of an electron to be 9.11× 10-31 kg.
What break-even resale price in three years : What break-even resale price in three years will make you indifferent between buying and leasing?
Define what is the final temperature inside the calorimeter : Both pieces are placed in a calorimeter whose heat capacity is negligible. What is the final temperature inside the calorimeter (c of copper = .387 J/gK)
Capital budgeting decisions in npv and irr : There are other measures used in capital budgeting decisions other than NPV and IRR. What are those measures? What are their weaknesses as compared to NPV/IRR
Explain what was the initial temperature of the ethylene : a car radiator coolant, loses 999J of heat. What was the initial temperature of the ethylene glycol if the final temp is 32.5 degrees C
Compute the change in entropy of the system : Calculate the change in entropy of the system and the surroundings and the total entropy change if four moles of an ideal gas is expanded isothermally
Compute the flux of co2 to the atmosphere : Calculate the flux of CO2 to the atmosphere (in kg/yr), given that its atmospheric concentration is 360 ppm and its atmospheric residence time is 4 years.
What is the amount to use as the annual sales figure : What is the amount to use as the annual sales figure when evaluating this project- Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be $1,350,000 per year, and fixed costs are $1,250,000 ..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Problem on opportunity cost

Explain how does opportunity cost enter into the make or buy decision and what would be an example of a decision that you might make in your personal life that would involve an opportunity cost?

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Evaluate the ear for each investment choice

You have found three investment choices for a one-year deposit: 10.5% APR compunded monthly,

  What is the beta of xyz companys equity

Management estimates that the beta of the debt is 0.3 and the beta of the total assets is 0.5. What is the beta of XYZ Company"s equity?

  Multiple choice questions based on real estate finance

The difference between the rate of return on assets and the cost of borrowing is:

  Find the weighted average cost of capital

Find the weighted average cost of capital and if Company X wants to change its capital structure (i.e., lower its WACC), what should it do?

  Commercial insurances and payment expectations

Give a brief background on the following topics: a) Government insurances and payment expectations, b) Commercial insurances and payment expectations

  Case study:cartwright lumber company

The short-form forecasting model (Q1 tab) shows 2003 as the base year (historical) and five forecast years, 2004-08. The forecast assumptions are entered for you in C4.G15. Show your understanding of the short-form forecasting model by answering the ..

  Should the company buy and install the machine press

The press also requires an initial investment in spare parts inventory of RM19,000, along with an additional RM2,000 in inventory for each succeeding year of the project. If the tax rate is 35 percent and the discount rate is 12 percent, should th..

  Facilitating the exporting process

Some argue that government-sponsored agencies such as the Export-Import Bank of the U.S. essentially subsidizes United State exports;

  Evaluate the value of stock using dividend discount model

Evaluate the value of stock using Dividend Discount Model and Dividends are expected to continue growing at the historic rate for the foreseeable future.

  Calculate accrual basis net income

XXX maintains its records on the cash basis. During 2011, XXX collected cash of $670,000 from customers and paid $321,000 to suppliers. Depreciation expense of $25,000 would have been recorded on the accrual basis.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd