User Account

All Pages

Calculate the npv of projects a and b

Assignment Help Finance Basics
Reference no: EM133119920

Two projects, A and B, provide the following cash flows over a period of six years. Which one of these projects will be selected on the basis of the payback period?

Year

0

1

2

3

4

5

6

A

-100

20

30

50

10

10

0

B

-100

10

20

30

40

70

80

Assuming that the cost of capital is 10%, calculate the NPV of projects A and B as defined in the part a. Assume a tax rate of 20%, calculate after tax NPV? If the two projects are mutually exclusive, which one will be preferred?

Reference no: EM133119920

Questions Cloud

What is the rate of return on investment : Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $2
What is the net present value of project : Mille-Hiver Corp. is considering a 20-year project that requires an initial investment of $15 million. The project provides an annual cash inflow of $1.5 millio
Master degree in business for free : If it were possible for you to get a master's degree in business for free, how could you use it, and What would be your reasons for taking a business course?
Positive abnormal return : "Your friend constructs a trading strategy that, on each day, buys the 10% of firms listed on the NYSE that had the highest trading volume on the previous tradi
Calculate the npv of projects a and b : Two projects, A and B, provide the following cash flows over a period of six years. Which one of these projects will be selected on the basis of the payback per
Analyze and compare the recovered paint fragments : Describe the evidence collection method, including documentation and packaging and List specific analysis to be requested at the laboratory
Calculate the principal and interest gained : James, a foreign exchange trader in US, can invest 8,000,000 USD, or the foreign currency equivalent of the bank's short-term funds, in a covered interest arbit
Effectively supported with evidence : Determine aspects of your argument that would be effectively supported with evidence. Defend your choices.
Businesses commonly use celebrities : Why did you choose this celebrity? How does this celebrity align to the target market?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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