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

What is meant by back-to-back term, It is significant that the contracts be...

It is significant that the contracts between the main contractor and the customer and between the key contractor and subcontractors are back-to-back; what is meant by that term?

What is meant by the term managing expectations, What is meant by the term ...

What is meant by the term managing expectations? Why is expectation management a significant part of the project manager’s job? What affects a customer’s expectations? We all h

What are institutions, What are institutions? Institutions are formal ...

What are institutions? Institutions are formal organisations as like: • Government : the group of some people and institutions who control and manage a country Civic socie

Producing the standard level products, Provisionally the new software is ca...

Provisionally the new software is called SafeCus with two projected levels of service - Premier and Standard. The Premier Level could be on sale within a year and will provide b

Analyse the monetary policy called inflation targeting, Question 1: (a)...

Question 1: (a) "Money demand is inversely related to interest rates and is stable over time." Discuss the theoretical and empirical validity of this statement. (i) Analyse

Industrial economics, Discuss, using examples the economic consequences of ...

Discuss, using examples the economic consequences of a sudden monopolization of an industry that had been previously been competitive

What is sampling, Sampling and tests of significance are very important too...

Sampling and tests of significance are very important tools in business economics. In fact one cannot do any meaningful marketing research without the requisite knowledge of sampli

Economic health of a nation, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 a) Many are concerned

Is unemployment and underemployment a problem, Is unemployment and underemp...

Is unemployment and underemployment a problem? The cost of unemployment is both: • Economic along with the opportunity cost of lost output raised poverty and inequality

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