internal rate of return decision rule, Financial Management

Assignment Help:

Towson Enterprises has recognized two mutually exclusive (can’t do both) projects.  The relevant cash flows and timing of those cash flows are shown in the following table.  Suppose that the cash flows in years 1 through 4 all are received at the finish of the year.

 

Year

Project A

Project B

At Start

$ (50,000)

$ (50,000)

1

26,000

12,000

2

20,000

16,000

3

16,000

20,000

4

12,000

26,000

( a )        What is the approximate internal rate of return for every of the two projects?  If you apply the internal rate of return decision rule, which project should Towson accept?

 (b)         If the needed rate of return is 9%, what is the net present value for every  of the two projects?  Which project would Towson select if it applies the net present value decision rule

 


Related Discussions:- internal rate of return decision rule

Determine the amount of financing required - cost of capital, Determine the...

Determine the Amount of financing required   The last factor determining company's cost of funds is the amount of financing required, where cost of capital increases as the fin

Accounting standards, Accounting Standards The paradigm shift in the e...

Accounting Standards The paradigm shift in the economic environment during last few years has led to increasing attention being devoted to accounting standards as a means towa

Profitability ratios, Profitability Ratios   Profit Margin  ...

Profitability Ratios   Profit Margin  It is a measure of the profit margin of the company. This is important to gauge the financial position of the company.

Inventory turnover ratio or stock turnover ratio, I need a report on the to...

I need a report on the topic Inventory Turnover Ratio. Can you please assist me for Inventory Turnover Ratio report for about 2500 words?

Company financial performance, In the telecom industry of the Australia, th...

In the telecom industry of the Australia, these are some most important organizations such Vodafone Austrelia‎, TransACT Capital Communications, Optus, and Telstra. Vodafone A

Debt and coverage ratios, The ability of a firm to satisfy its debt o...

The ability of a firm to satisfy its debt obligations can be assessed using three sets of ratios: Short-term solvency ratios Capitalization

Strategic management, Develop and implement strategic plan using bounce fit...

Develop and implement strategic plan using bounce fitness as case study

What is the function of dividend policy decision, Q. What is the function o...

Q. What is the function of Dividend policy decision? Dividend policy decision: the third major decision of the financial management of the decision related to the dividend poli

Write Your Message!

Captcha
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