Which method will most likely provide most accurate decision

Assignment Help Corporate Finance
Reference no: EM131229996

Assignment: Discussion Question

The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the NPV indicated rejection, but the IRR and Payback methods both indicated acceptance. Explain why this conflicting situation might occur and what conclusions the analyst should accept, indicating the shortcomings and the advantages of each method. Assuming the data is correct, which method will most likely provide the most accurate decisions and why?

Reference no: EM131229996

Questions Cloud

Discuss a personal experience or outside source : Share/discuss a personal experience or outside source/news item/blog, article, etc. -Look for new things out there that represent the material well for you.
Calculate the after tax cash flows for the project : Calculate the after tax cash flows for the project for each year. Explain the methods used in your calculations. Is this an economically acceptable project to undertake? Why or why not?
Value of employer surplus in model : What is the value of employer surplus in this model? What is the value of worker surplus in this model? What is the value of dead weight loss in this model?
What does the model predict about the spin : How does the shell model predict 7- 2 for the ground state spin parity of 41 20Ca. What does the model predict about the spin and parities of the ground states of 30 14Si and 14 7 N?
Which method will most likely provide most accurate decision : Explain why this conflicting situation might occur and what conclusions the analyst should accept, indicating the shortcomings and the advantages of each method. Assuming the data is correct, which method will most likely provide the most accurat..
How nurse would demonstrate leadership in given situations : Nurses demonstrate leadership in many situations. - how the nurse would demonstrate leadership in given situation:
Determine the coulomb''s coefficient in the semi emperical : The masses (amu) of the mirror nuclei 27 13Al and 27 14Si are 26.981539 and 26.986704 respectively. Determine the Coulomb's coefficient in the semi emperical mass formula.
Changes in the equilibrium price and equilibrium quantity : Perform an analysis for the market of boxes of chocolates (explain in words + graph) and show on a graph the adjustment process to the new equilibrium. Describe the changes in the equilibrium price and the equilibrium quantity.
Brief preview of the overall aim and procedure of your paper : Present a revised formulation of the ethical question and introduction to the topic. Explain the kind of reasoning you think is the best way to approach this question, and how that reasoning supports the position you think is strongest.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Explain the limitations of using a break-even point

What is the role provided by a break-even point and how would you calculate this point? and also explain the limitations of using a break-even point and how would you incorporate this point with management strategic planning?

  Calculate liquidity ratio of firm for prior and current year

Calculate liquidity ratios of the firm for the prior year and current year: current ratio, inventory turnover, and the accounts receivable turnover (for the denominator of the turnover ratios.

  Question 1a firm is considering three projects project a

question 1a firm is considering three projects. project a requires an initial investment of 80000 and is expected to

  Find the standard deviation of the return

The expected return on market is 12 percent and the risk free rate is 7 percent. The standard deviation of the return on the market is 15 percent. Ones investor creates a portfolio on the efficient frontier with an expected return of 10 percent.

  How has the market price of wal-mart compared to earnings

How has the market price of Wal-Mart compared to earnings per share for 2002-2004? Round to two decimal places. What information should be reported to compare earnings over time and across companies?

  Construct time series plot

Use the information to construct time series plot and also Use Excel Solver to make quadratic trend equation to forecast team value.

  Provide a combination of extraordinary convenience

Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.

  Risk management and hedging strategy using optionsyou have

risk management and hedging strategy using optionsyou have been hired as a manager of a well diversified mutual fund

  Determine what is the intrinsic value of a share today

A firm is planning on paying its first dividend of $2 three years from today. After that, dividends are expected to grow at 6% per year indefinitely. The stock's required return is 14%.

  Basic financial and economic data on the country

As a financial manager be interested in doing business in this country-Growth Rate of GDP, both current and historical

  You are hired as a consultant by starpucks the company

you are hired as a consultant by starpucks. the company would like to experiment locally with a new marketing strategy

  Case 1a friend of yours employed as a tier 2 field service

case 1a friend of yours employed as a tier 2 field service representative for a telephony corporation wants your help

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