Evaluating two investment projects

Assignment Help Financial Accounting
Reference no: EM132203772

Care Cat, Inc., is evaluating two investment projects, each of which requires and up-front expenditure of $1.5 million.  The projects are expected to produce the following net cash inflows:

Year                              Project A                       Project B

1                                $500,000                        $2,000,000

2                                    1,000,000                      1,000,000

3                                    2,000,000                        600,000

(a) Need each project's IRR?

(b) Need each project's NPV is the cost of capital is 10 percent.  5 percent.   15 percent.

Reference no: EM132203772

Questions Cloud

Using and applying decision analysis : If you had to choose only one of the criterion for decision analysis, which one would you choose and why?
Explain the core dimensions of empowerment : What new uses do you see for voice technology? Explain the core dimensions of empowerment.
What stock price will you receive the margin call : The broker requires a 49% margin and says the margin call will happen at 40%. At what stock price will you receive the margin call?
You are considering starting a clinic : You are considering starting a clinic. Your financial projections for the first year of operations are as follows:
Evaluating two investment projects : Care Cat, Inc., is evaluating two investment projects, each of which requires and up-front expenditure of $1.5 million.
What are the reasons for housing affordability : ECON20039- Economics for Managers - discuss housing affordability crisis in Australia with the demand and supply side factors
Net present value and irr of the project : The cost of capital for this type of equipment is 21%. Need is the net present value and IRR of the project.
Significant marketing campaign from your internship brand : Identify a significant marketing campaign from your internship brand.
Explain the differences between fixed costs : Explain the differences between fixed costs, semi-fixed costs, and variable costs.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prime contractors prime is a privately owned company that

prime contractors prime is a privately owned company that contracts with the u.s. government to provide various

  Determine selling price of mobile phones

Determine the markup percentage (rounded to two decimal places) for mobile phones. Determine selling price of mobile phones. Round to the nearest dollar.

  Relationships-primary keys-foreign keys-cardinality

Define/Describe/Discuss Database (Fields, Records, Tables, Database) and Database Management. Define/Discuss/Describe ERD: Relationships, Primary Keys, Foreign Keys, Cardinality, etc. Provide Examples.

  Foster company sold inventory to the slate corporation

On July 1, 2016, the Foster Company sold inventory to the Slate Corporation for $320,000. Terms of the sale called for a down payment of $80,000 and three annual installments of $80,000 due on each July 1, beginning July 1, 2017. Each installment als..

  Journal entries for the purchase and the sale of

journal entries for the purchase and the sale of shares.shott farm supplies corporation purchased 800 shares of general

  Within the relevant range

Within the relevant range: variable cost per unit decreases as production decreases. fixed cost per unit increases as production decreases. variable cost per unit increases as production decreases. fixed cost per unit decreases as production decrease..

  What is the accounting entries made

What is the accounting entries made if a company pays $1,000 monthly rent in cash?

  General ledger and accounts receivable ledger accounts

Record the transactions in the cash receipts journal. Total and verify column totals and rule the columns. Use the general journal to record sales returns and allowances.

  Income statement and the balance sheet

Barth Company reports the following year-end account balances at December 31, 2013. Prepare the 2013 income statement and the balance sheet as of December 31, 2013.

  The federal long-term tax-exempt rate

Through a “Type B” reorganization, Golden Corporation acquired 90% of Retriever Co stock by October 2 of the current tax year ending December 31. At the time the 90% was acquired, Retriever Co was worth $800,000 and the Federal long-term tax-exempt r..

  Prepare necessary journal entries to record sale of truck

Disposal of Property, Plant, and Equipment Temple Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $42,500. At acquisition, Temple had estimated that the truck would have an estimated life of 5 year..

  Effective interest rate for the bonds

On February 1, 2011, Lagune & Sons issued 9% bonds dated February 1, 2011, with a face amount of $200,000. The bonds sold for $182,841 and mature in 20 years. The effective interest rate for these bonds was 10%. Interest is paid semi annually on July..

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