User Account

All Pages

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

Trusses, Analysis of truste,2D truss analysis using method of joint(cantile...

Analysis of truste,2D truss analysis using method of joint(cantilever & simply support)?

Oscilloscope probes, Direct probe,isolation probe,high impedence probe,acti...

Direct probe,isolation probe,high impedence probe,active probe,current probe

Terrestrial telescope., how to making terrestrial tele scope an how its wor...

how to making terrestrial tele scope an how its work and formulation of terrestrial telescope

Resolving power and rayleigh criterion of resolution, Q. Explain Rayleigh c...

Q. Explain Rayleigh criterion of resolution. What is meant by resolving power of grating? Ans.   Resolving Power (i)  Meaning of Resolution : The resolving power of

Naval architecture and marine engineering, i have a coursework for finite e...

i have a coursework for finite element analysis of marine structure and i need help to solve it

Thermo electric thermometer, how thermoelecteric thermometer is contructed ...

how thermoelecteric thermometer is contructed and how it working

Comparison of fp result with other metods, Comparison of  fp result with o...

Comparison of  fp result with other metods Comparisons of FP results with results from other computational methods for inviscid flows are given. The FP results have been obtain

Constraction technology, test for chemical stability of aggregates

test for chemical stability of aggregates

Transistor as an amplifier, explain the working of transistor as an amplifi...

explain the working of transistor as an amplifier

Homework, name the functions of the CIPM

name the functions of the CIPM

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd