Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
IRR and NPV approaches Valley Corporation is attempting to select the best of a group of independent projects competing for the firm's fixed capital budget of $4.5 million. The firm recognizes that any unused portion of this budget will earn less than its 15% cost of capital, thereby resulting in a present value of inflows that is less than the initial investment. The firm has summarized, in the following table, the key data to be used in selecting the best group of projects.
Project
Initial investment
IRR
Present value of inflows at 15%
A
$5,000,000
0.17
$5,400,000
B
800,000
18
1,100,000
C
2,000,000
19
2,300,000
D
1,500,000
16
1,600,000
E
22
900,000
F
2,500,000
23
3,000,000
G
1,200,000
20
1,300,000
a. Use the internal rate of return (IRR) approach to select the best group of projects.
b. Use the net present value (NPV) approach to select the best group of projects.
c. Compare, contrast, and discuss your findings in parts a and b.
d. Which projects should the firm implement? Why?
compute the dollar value of the futures contract notional and the number of contracts to buy/sell for optimal protection
What would be the outstanding loan balance at the end of 10years and calculate the annual 10year Net Cost per thousand using the Traditional Method given the following information for a $1000 policy
One task of a financial manager is to do research on the main competition to the firm you work for. Do some research using Yahoo Finance and other search engines on these two competitors,
You will investigate how humans and the work environment interact. This information will be used to develop sound ergonomic principles for the design of a safer and healthier work place. Physical components of a workplace will be evaluated and interv..
About two thirds of all California almonds are exported. The ups and downs of the United State dollar, therefore, cause headaches for almond growers. To avoid these problems, a grower decides to concentrate on domestic sales.
What CPTED strategies would you use for a typical high school? Consider the area around the building(s) as well. Be sure to refer to the CPTED principles stated in the lecture notes.
Define risk tolerance and factors in setting risk tolerance and define limitations in risk tolerance and potential outcomes.
Investing in the stock market and Risk-free investment and inflation
The real risk-free rate is 3 percent, & inflation is expected to be 3 percent for the next two years. A 2-year Treasury security yields 6.3 percent.
If according to the historical financial statements for Starbucks, the debt to assets ratio is 4.00 percent and is forecasted to go to zero in 2003.
Determine risk management? Discuss the importance of risk management in an organization? How does risk management mitigation create value for an organization?
How much money will she have in her bank account after five years and how much money will be in her account after five years?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd