Calculate net present value to assess the investment

Assignment Help Managerial Accounting

Reference no: EM133144690

DBA Advanced Accounting and Finance PROJECT

Question 1. Explain the importance of accounting & finance in modern economy (max 500 words).

Question 2. Comment the financial evolution of Apple company based on Yahoo Finance data provided bellow. Indicate if you would invest in Apple stock based on the information provided. Explain your results in a video presentation.

This should include a full ratio analysis covering all aspects including short term, medium and long term. Full formulas and figures should be used, the norm should be stated and the ratios should be analyses and its implications mentioned. E.g. if the company has poor liquidity, the norm for liquidity ratios should be mentioned, and the implications of poor liquidity should be elaborated and a conclusion drawn.

Question 3. Calculate the Internal Rate of Return (IRR) of the following investment project:

Year	Cash Flows
0	-30,000
1	4,000
2	4,000
3	4,000
4	4,000
5	4,000

Initial investment (year 0) =30,000 EUR. Provide the finance interpretation of results.

Question 4. Calculate Net Present Value to assess the investment in question 3. Annual market interest rate = 0.5 %. Provide finance interpretation of results. Are IRR and NPV supporting the same investment decision? Explain similarities and differences between IRR and NPV.

Project:
• You can argument your conclusion using Excel calculations
• You can use other indicators/statistics or sources in the analysis for question 2
• Question 2: video and Powerpoint presentation
• Project must be uploaded in pdf format
• Charts/tables and print screens of Excel calculations can be included in Powerpoint presentation or at the end of project as appendix section

Reference no: EM133144690

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