Npv, finance, Other Engineering

Assignment Help:
Problem 1
Suppose a company is considering two independent projects, Project A and Project B. The cash outlay for Project A is $14,000. The cash outlay for Project B is $20,000. The company’s cost of capital is 12%. The following table shows the after-tax cash flows. For each project, compute the NPV, the IRR, the MIRR, and indicate the accept/reject decision.
Year
Project A
Project B
1
$4800
$6700
2
$4800
$6700
3
$4800
$6700
4
$4800
$6700

























Problem 2
Suppose a company is considering two investment projects. Both projects require an upfront expenditure of $30 million. The company estimates that the cost of capital is 10% and that the investments will result in the following after-tax cash flows (in millions of dollars). Complete parts (a) through (e) below.

Year
Project A
Project B
1
$28
$10
2
$20
$15
3
$10
$20
4
$5
$25

Find the regular payback period for each project.
Find the discounted payback period for each project.
Assume that the two projects are independent and the cost of capital is 10%. Which project or projects should the company undertake? Base your results on the NPV.
Assume that the two projects are mutually exclusive and the cost of capital is 5%. Which project or projects should the company undertake? Base your results on the MIRR.
Explain why quantitative measures may not always be the best way to evaluate a project.

Related Discussions:- Npv, finance

Rake angle, the effect when side relief angle is too much

the effect when side relief angle is too much

Finanacial management, Why is it important for engineering students to have...

Why is it important for engineering students to have financial management as a subject?

Dam engineering, How do we classify the principal planes as minor and major...

How do we classify the principal planes as minor and major principal planes?

Android, need help correcting an error on running the developed app it doe...

need help correcting an error on running the developed app it doesnt show the fetched output from internet ?

Accurate design of heat transfer systems, Hollow cylinders are useful build...

Hollow cylinders are useful building structures commonly used for both industrial and domestic purposes. Tanks, cars and some transport machineries are all applications of inner-in

The axial flow compressor - aircraft engine, The axial flow compressor: ...

The axial flow compressor: The axial flow compressor is by far the most popular type of compressor and, although it is more difficult to manufacture, it is a more efficient com

Speed control in aircraft engine, Speed control in Aircraft Engine: Bec...

Speed control in Aircraft Engine: Because the APU is designed to run at a constant rpm, some means must be provided to control this speed. Such a control device is known as a

Identify fire hazards - fire risk assessment , Identify fire hazards: ...

Identify fire hazards: In this part, the process appears to be concentrating on issues that can lead to fire but we have to remember to also consider the presence of a fire wi

LIBS, Laser induced breakdown spectroscopy

Laser induced breakdown spectroscopy

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