Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
b) Based on these figures, Project Detroit should be pursued as it has the superior NPV. Even though both projects yield the same absolute amount of net cash flow (each totalling $550,000), Project Colorado does not observe most of its returns until the final two years, i.e. when the money has lost much of its value. In addition, the payback period for Detroit is shorter (just 2 years). The ARR is the similar for both projects (since DCF are not considered in the calculation of ARR). Other quantitative factors may also necessitate to be considered, e.g. management preferences.
Year
Investment Colorado
Investment Detroit
Net Cash Flow ($)
Discount Factor
Present Value ($)
0
(300,000)
1.00
300,000
1
50,000
0.9524
47,620
100,000
95,240
2
0.9070
90,700
200,000
181,400
3
0.8638
172,760
4
0.8227
164,540
41,135
NPV
175,620
190,535
Question 1 The world economy is globalizing at an accelerating pace. What do you mean by globalization? Describe the merits and demerits of Globalization Question 2 The
Question: A promoter proposes to construct a stone crushing plant on the Eastern coast of the island. (a) Discuss whether he needs to submit an Environmental Impact Assessme
Question 1 Identify and assess the different IRR measurement techniques implemented in a bank Question 2 Describe the use of VaR for capital requirement for market risk Ques
Plant maintenance consists of all activities needed to keep the plant machinery tools and equipment services including building and fittings in standards working condition. In
QUESTION E-Marketing is the use of digital technologies to help promote and sell goods or services. It is described as a revolution for the marketing industry. (a) List and
Question: (i) Give two examples of diffusion models that could be used to forecast the sales of a new product. (ii) With reference to common pattern portrayed by the lifecy
QUESTION Part 1 Company X is evaluating whether each of these items is a financial instrument and whether it should be accounted for under IAS 32 (1) Cash deposited in
QUESTION (a) (i) What is information overload? Illustrate your answer through a practical example. (ii) How could each of the factors below contribute to information ove
What are the Methods of Training of Supervisors? Methods of Training of Supervisors: Supervisors or foremen are above the workers or operative level workers into the pyra
QUESTION 5 Identify and describe carefully, with reference to the definition of learning organizations, the communicative competencies managers need to acquire in organizations
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd