+1-415-670-9189
info@expertsmind.com
What is each projects internal rate of return
Course:- Cost Accounting
Reference No.:- EM13298441




Assignment Help
Assignment Help >> Cost Accounting

Caledonia is considering two additional mutually exclusive projects. The cash flows associated with tese projects are as follows:

Year ProjectA Year Project B
0 -$100,000 0 -$100,000
1 32,000 1 0
2 32,000 2 0
3 32,000 3 0
4 32,000 4 0
5 32,000 5 $200,000

The required rate of return on these projects is 11percent.

a. What is each project's payback period?

b. What is each projects net present value?

c. What is each project's internal rate of return?

d. What has caused the ranking conflict?

e. Which project shoudl be accepted? Why?

f. Describe the factors that Caledonia would have to consider if they were doing a lease versus buy for the two projects.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
Assuming that costs for other colleges are the same as for the College of Business, what is the total cost for the two processes you selected for your university, in total?
Prepare the entry to record one years depreciation expense of $5,000 for the equipment as of December 31, 2011. In cases where no entry is required, please select the option
Prepare a sales and production budget for January, February, and March, and prepare a cash receipts schedule for sales and a cash payments schedule for material purchased.
Calculate the prime cost per unit. Calculate the conversion cost per unit. Calculate the total variable cost per unit. Calculate the total product (manufacturing) cost per uni
What is Toni's opportunity cost of (i) working at ACI (ii) holidaying in Penang? Should Toni go for the trip to Penang - what is the estimated budget that the government will
Calculate the amount of net income to common shareholders derived from the excess return on creditors' capital and the amount from the return on common shareholders' capital
Reconstruct the journal entry for the disposal of property and equipment during the year - compute the amount of property and equipment that United Parcel wrote off as impaire
What is the difference between the product unit cost you computed using the traditional approach and the one you computed using ABC? Does the use of ABC guarantee cost red