Evaluate and rank each alternative

Assignment Help Financial Accounting
Reference no: EM133078553

Question - FINALSNA Enterprises is trying to select the best investment from among four alternative involves an initial outlay of P100,000. Their cash flows follow:

YEAR

A

B

C

D

1

10,000

50,000

25,000

0

2

20,000

40,000

25,000

0

3

30,000

30,000

25,000

45,000

4

40,000

0

25,000

55,000

5

50,000

0

25,000

60,000

Required - Evaluate and rank each alternative based on

a) discounted payback period (use a 10% for cost of capital), (present your answer as: Project A-5.5).

b) net present value (use a 10% discount rate) (present your answer as: Project B-150000).

c) internal rate of return. (present your answer as: Project C-12.50).

Reference no: EM133078553

Questions Cloud

Prepare the necessary journal entry to record the redemption : Singh Company decided to redeem the bonds on April 1st, 2021 at 102. Prepare the necessary journal entry to record the redemption
What is the future value : What is the future value of an 8%, 5-year ordinary annuity that pays $250 each year? Do not round intermediate calculations
How covid will likely transform the globalization processes : How COVID will likely transform the globalization processes. Do you think COVID will increase or decrease the current globalization trend? give reasons and exa
How much is the amortized cost and carrying value : How much is the amortized cost/carrying value of the note receivable reported in ABC's statement of financial position at December 31, 2021
Evaluate and rank each alternative : Evaluate and rank each alternative based on discounted payback period (use a 10% for cost of capital), (present your answer as: Project A-5.5)
How would adam smith respond to federal vaccination : How would Adam Smith respond to Federal Vaccination Requirement and how would Karl Marx respond to Federal Vaccination Requirement? What country would most like
Explain the concept of economic disruption : Briefly explain the concept of economic disruption before describing why the innovation is economically disruptive and how it changed and/or continues to change
What contributes to poland gdp : What contributes to Poland's GDP?
Why online retail shopping thrived in china : In 2019, Chinese online retail sales were $1.5 trillion, representing a quarter of China's total retail sales volume, and more than the retail sales of the ten

Reviews

Write a Review

Financial Accounting Questions & Answers

  Identify four specific items relating to vacation leave

Identify four specific items relating to vacation leave and vacation pay that will have to be addressed in the policy to ensure compliance with the employment

  What is the npv of the project and irr

Based on these preliminary project estimates, what is the NPV of the project? What is the IRR? (Enter your answer in dollars, not in millions of dollars)

  What would be the value of this bond

A bond that matures in 14 years has a $1,000 par value. What would be the value of this bond if it paid interest semiannually

  Principles of financial accounting

Principles of Financial Accounting- Affordable Trailer Rental rents small trailers by the day for local moving jobs. This is its adjusted trial balance at the end of the current fiscal year: From the information given, record closing entries in journ..

  Compute Devin basis in his partnership interest

Devin contributes land to the newly formed DN Partnership in exchange for a 30% interest. Compute Devin basis in his partnership interest

  Prepare all the necessary adjusting entry at fiscal year-end

Prepare all the necessary adjusting entry at fiscal year-end Dec 31, 2015 .Prepare the journal entries to record the purchase of the new vehicle on Oct 1

  Describe two ways in which venture capital firms structure

Describe two ways in which venture capital firms structure their funding to reduce risk. How many shares have to be issued through the SEO?

  What is the purchase price of the bond

At 7% payable semi-annually matures in 8 years. If it is bought to yield 5.5% compounded semi-annually, what is the purchase price of the bond?

  Calculate the firm total common equity

The company had cash worth $2,940,396, accurals of $843,998, inventory of $2,523,821, Calculate the firm Total Common Equity

  What are the steps to making a statement of cashflows

Determine what are the steps to making a statement of cashflows when given a balance sheet, income statement, and statement of retained earnings?

  Determine the new depreciation charge for the third year

NewLife Hospital purchased a special X-ray machine.- Given this information, determine the new depreciation charge for the third year on the basis of the revised estimated useful life.

  Why manufacturing companies more sensitive to material

Determine the importance of companies managing these variances in relation to sustaining profitability. Why manufacturing companies more sensitive

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