Calculate the net present value

Assignment Help Accounting Basics
Reference no: EM131015518

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 two techniques should be used in this case? Why?

Year

0

1

2

3

4

5

CF1

-$54,687

$32,567

$28,456

$30,423



CF2

-$98,435

$28,954

$31,984

$36,976

$38,984

$42,978

Reference no: EM131015518

Questions Cloud

Implementing the irr : Calculate the IRR for the following two projects. Which of the two projects is preferable based on the IRR? Under what conditions is it acceptable to use the IRR? Under what conditions should caution be used when implementing the IRR?
Compute the annual equivalent worth of the following project : Compute the annual equivalent worth of the following project cash flows at an interest rate 9%
Calculate the irr for the project : 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%?
What factors shifting the role of the primary care physician : If academic institutions become more involved in managed care, what will be the impacts on continuous quality improvement? What factors are shifting the role of the primary care physician in the future
Calculate the 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 ..
What was the amount of interest paid : A company reported interest expense of $580,000 for the year. Interest payable was $30,000 and $70,000 at the beginning and the end of the year, respectively. What was the amount of interest paid?
Is he liable as an indorser why or why not : He contended that the check had not been dishonored within the time allowed by law. Is he liable as an indorser? Why or why not? Can you please go into detail as the wording of this question throws me off a little bit.
Find its displacement : A spring with natural length .5 m has length 50.5 cm with a mass of 2 gm suspended from it. The mass is initially displaced 1.5 cm below equilibrium and released with zero velocity. Find its displacement for t > 0.
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%:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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