Solution-Compute the net present value

Compute the net present value

Assignment Help Managerial Accounting

Reference no: EM133095515

Question - Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments.

	Project A	Project B
Initial investment	$(186,325)	$(146,960)
Expected net cash flows in:
Year 1	49,000	27,000
Year 2	51,000	46,000
Year 3	75,295	54,000
Year 4	94,400	83,000
Year 5	72,000	36,000

a. For each alternative project compute the net present value.

b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose?

Reference no: EM133095515

Questions Cloud

Explaining the technique of planning : For organization to move its projects from initiation to implementation, there has to be certain keys that need to be observed by the Project HRM.

Identify different types of joints : Identify the different types of joints. Discuss a clinical scenario where understanding joint location and function can be beneficial.

Identify a project you wish to implement in workplace : Outline the techniques you will use to support colleagues to resolve difficulties, problems and conflict relevant to the project.

Interpersonal and communication styles : Describe the leadership style you believe is most appropriate for your project. Describe the interpersonal and communication styles relevant to this leadership

Compute the net present value : Following is information on two alternative investments being considered by Jolee Company. Compute the net present value

Touch labour and knowledge labour : How training and development is related to touch labour and knowledge labour?

Types of anatomy is affected in osteoarthritis : Discuss what type of disease it is. Include what types of anatomy is affected in osteoarthritis.

Make proper investment decisions : Why do you think it is important for health care managers know how to make proper investment decisions? Share an example to support your answer.

Economic trends of the health care payment system : What are the economic trends of the health care payment system? Why are costs increasing in the health care system?

User Account

All Pages

Compute the net present value

Reference no: EM133095515

Reference no: EM133095515

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT