Project atlanta-investment appraisal, Business Economics

Assignment Help:

a) $130,000  

b) Project Atlanta has the shorter payback period

Atlanta

Boston

Payback

1 year and 10 months

2 years and 2 months

ARR

7.7%

12.8%

c) Both projects do better than the interest rate so are worth pursuing, but Project Boston has a much better ARR ,however the projects cost the same.

d) This depends on whether the firm's priority was a quick return on the investment (in which case Atlanta would be picked) or if profit were additional of a priority. Although there is a enhanced average rate of return for Boston, much of the money is inward at a later stage in the project's timeline, i.e. it would be worth less in today's value

 


Related Discussions:- Project atlanta-investment appraisal

Are patterns of trade a problem, Are patterns of trade a problem? Gene...

Are patterns of trade a problem? Generalising Less Developed Countries have a comparative advantage into primary products and employment intensive manufacturing; Developed Cou

Methods of calculating national income, QUESTION (a) Explain the 3 meth...

QUESTION (a) Explain the 3 methods of calculating National Income? (b) Why do all countries in the world calculate their National Income every year, despite all the difficul

Barriers or hindrances with presenting christian gospel, Barriers or Hindra...

Barriers or Hindrances with Presenting Christian Gospel 1.) What practical steps could be taken to build a relationship with a follower of this worldview who might be a co-wor

Market structure, explain the market structure of computer engineering sect...

explain the market structure of computer engineering sector

Political lobbying, Tasks "Accounting standard setting is a political lo...

Tasks "Accounting standard setting is a political lobbying process, and as such offers various Opportunities and means for interested parties to affect its outcomes." Require

Colonial background countries of the development process, What are colonial...

What are colonial background countries of the development process? A colony is a country controlled by other. Various European countries had extensive empires as: • Latin

What are the restrictions of lewis, What are the restrictions of Lewis? ...

What are the restrictions of Lewis? The restrictions of Lewis: • Assumes complete employment in urban regions. Evidence recommend otherwise • Raised profits may be inves

Assignment, law of variable propotions

law of variable propotions

How can trade agreements assist development, How can trade agreements assis...

How can trade agreements assist development? A trade agreement is while two or more countries to by decrease or abolish tariffs, non-trade and quotas barriers which are establ

Assignment, What is the value proposition that Apple Pay offers consumers? ...

What is the value proposition that Apple Pay offers consumers? How about merchants?

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