+1-415-670-9189
info@expertsmind.com
Evaluate an investment proposal
Course:- Corporate Finance
Reference No.:- EM13194765




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Corporate Finance

You quote Oehmke who seem to have said that the NPV could be "increasing as the discount rate increases". I doubt that very much ( assuming the base data stay the same). Could you explain in which circumstances that could be the case?

Secondly, you state that the discount rate could take into account inflation and risk. How would that work in practice. How would you come to a specific discount rate if you are the management accountant that has to evaluate an investment proposal?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Corporate Finance) Materials
Analyze the market over the week. What was driving the market? What do you think caused the changes in the market and the Dow Jones? Did the market react quickly to news?
What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return? Attach your Excel file showing your calculations.
What is the present value of the tax benefits resulting from using MACRS as opposed to straight-line depreciation? The asset qualifies as a three-year asset. Use the half-ye
The management of Mitchell labs announced to go private in 2002 by purchasing in all 3 million of its outstanding shares at 19.50/share. By 2006 management had restructured th
Explain the usefulness of a traffic analysis. Explain the terms latency, response time, and jitter, and describe their effect on overall network performance and on the perfo
Dr. Jones decides that on December 31st he is going to buy new building at $225,000. He agrees to put 20 percent down and make 18 equal yearly installments;
What is the NPV of this project, if the discount rate is 8.6%? Should the firm accept this project? What is the IRR of this project? Should the firm accept this project?
Create a financial analysis report of GE, including the following six sections - Research and include in the analysis any current events that might affect the analysis.