Relationship between the interest rate and the npv

Assignment Help Accounting Basics
Reference no: EM131015498

Please explain and show all work including equations.

Evaluate the following two cash flow streams using the PP, ROI, NPV, and IRR. Assume a MARR of 8%. Plot a graph showing the relationship between the interest rate and the NPV. Provide an interpretation of your calculations and graph.


0

1

2

3

4

CF Project 1

-$98,024

$74,000

$28,000

$12,000

$8,000

CF Project 2

-$76,000

$26,000

$26,000

$26,000

$26,000

Reference no: EM131015498

Questions Cloud

Calculate the irr for the project : Please explain and show all work including equations. Calculate the IRR for the project that has a $86,347 investment and the following returns. Should this project be undertaken if the MARR is 16%?
Exploring the work other researchers have done in the area : Rather than just analyzing resources, this week we will be blending our resources into a larger frame, drawing connections between each of the resources and to our project thesis.
Net present value and annualized net present value : Calculate the Net Present Value and the Annualized Net Present Value for the two projects with the following cash flow streams given an MARR of 15%. Which project is preferable based on the NPV? Which is preferable based on the ANPV? Which of the ..
Calculate the net present value for the project : Calculate the Net Present Value for the project that requires an investment of $91,347, has the estimated returns given in the following table, and must meet a minimum acceptable rate of return of 15%:
Relationship between the interest rate and the npv : Evaluate the following two cash flow streams using the PP, ROI, NPV, and IRR. Assume a MARR of 8%. Plot a graph showing the relationship between the interest rate and the NPV. Provide an interpretation of your calculations and graph.
Where does the information on waste come from : How does just-in-time (JIT) inventory control help organizations become leaner? Where does the information on waste (waste in raw materials, waste in process and flow, etc.) come from
Discuss how a business can control its health insurance : Discuss how health insurance benefits might impact the organization's overall strategic goal-setting process - discuss how a business can control its health insurance benefit costs while using the benefit package as a recruitment and retention tool..
Risk and financial analysis : There is always uncertainty when we forecast or estimate future revenues and costs. The totality of the uncertainty can roughly be captured as:
Provide an opportunity to capture new ideas : Each week you will work on one aspect that will help you prepare for the course and reflect. Consider this Journal as study notes. This Journal will provide an opportunity to capture new ideas from knowledge gained and record your thoughts through..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Brown ferrings fiscal period is the calendar year

Determine the amount of accrued interest that was included in the proceeds received from the bond sale.

  Determine the predetermined overhead rate

Determine the predetermined overhead rate for the year 2011. Set up a T-account for Factory Overhead and enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate.

  Carter corporation applies manufacturing overhead on the

carter corporation applies manufacturing overhead on the basis of machine-hours. at the beginning of the most recent

  Which of the following principles require the application

which of the following principles require the application of the lower-of-cost-or-market rule? answer accounting

  Find assumptions exit valuation and probability of sucess

EBV is considering a $5M Series A investment in Newco. EBV proposes to structure the investment as 6M shares of convertible preferred stock.

  Mark macy is buying a house the house costs 250000 he

mark macy is buying a house. the house costs 250000. he plans to put 50000 down and borrow 200000 at 3 for 30 years.

  Glaser health products of ranier falls georgia is organized

glaser health products of ranier falls georgia is organized functionally into three divisions operations sales and

  Receiving stock appreciation rights over stock options

What is the executive's main advantage of receiving stock appreciation rights over stock options? In 2008, a $15,000 expense is recorded. What is the offsetting account?

  Herman company makes hockey sticks the costs and prices for

herman company makes hockey sticks. the costs and prices for the sticks follow. selling price 23.00 per stick

  Assuming that division a has sufficient excess capacity to

edwards company has two operating divisions a and b. the following information is provided for division a unit selling

  You are involved with the audit of jelco company for year

you are involved with the audit of jelco company for year 1 and have been asked to consider the confirmation reply

  On january 1 2005 fulbrite services inc purchased a new

1. which of the following should be reported as a change in accounting estimate?a. change in the reported beginning

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