Software for the? universitys class registration system

Assignment Help Financial Management

Reference no: EM131449019

Your firm has been hired to develop new software for the? university's class registration system. Under the? contract, you will receive $ 500,000 as an upfront payment. You expect the development costs to be $ 446,000 per year for the next 33 years. Once the new system is in? place, you will receive a final payment of $878,000 from the university 44 years from now.

a. What are the IRRs of this? opportunity?? (Hint: Build an Excel model which tests the NPV at? 1% intervals from? 1% to? 40%. Then zero in on the rates at which the NPV changes? signs.)

b. If your cost of capital is 10 % is the opportunity? attractive? Suppose you are able to renegotiate the terms of the contract so that your final payment in year 44 will be $ 1.2 million.

c. What is the IRR of the opportunity? now?

d. Is it attractive at the new? terms?

Reference no: EM131449019

Questions Cloud

Justify raci : RACI charts go beyond a communication plan in that they identify every project activity and specify the exact involvement of each stakeholder.

Minimizes the total number of dealers required : Find the employee schedule that minimizes the total number of dealers required, meeting the minimum level of each shift's requirements.

Balance sheet at the end of operation : Tiles Limited had the following balance sheet at the end of operation for 2015 and 2016 respectively TILES LTD as at Dec. 2015 as at Dec. 2016

Discuss the competencies that hr professionals need : 1. Name and discuss the competencies that HR professionals need.

Software for the? universitys class registration system : Your firm has been hired to develop new software for the? university's class registration system. What are the IRRs of this? opportunity?

Describe the history of fire prevention practices : Describe the history of fire prevention practices. Describe the philosophy and timing behind regulations for fire prevention, whether successful or not.

Create a diagram outlining the structure of federal judicial : Create a diagram outlining the structure of the federal judicial system.Discuss the roles of law and courts in today's business environment.

Was the discontinuity between project delivery and operation : Please note that you do not have to complete the actual calculation, but just show the methodology you would use to determine the benefits.

New regulatory compliance issues : As a department manager you have been asked to identify areas within your organization in need of change, based on the implications of the new regulatory.

User Account

All Pages