Calculate the npv and the irr for each project

Reference no: EM131101144

for competing projects the discounting method that consistently chooses the wealth maximizing project should be used, NPV measures profitability in absolute terms while IRR measures relative profitability NPV measures the amount by which the value of the firm changes and thus is consistent with maximizing wealth.information:consider two pollution prevention designs design A and design B. both design have a project life of 5 years design A requires an initial outlay of $180,000 and has a net annual after tax cash inflow of $60,000 revenues of $180,000 minus cash expenses of $120,000. design B with an initial outlay of $210,000 has a net annual cash inflow of $70,000 $240,000-$170,000 the after tax cash flows are summarized as follows: CASH FLOW PATTERNYEAR Design A Design B0 $180,000 $210,0001 60,000 70,0002 60,000 70,0003 60,000 70,0004 60,000 70,0005 60,000 70,000the cost of capital for the company is 12%required:calculate the NPV and the IRR for each project

Reference no: EM131101144

Questions Cloud

Calculate the npv and irr for each type of truck : Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck, and decide which to recommend.

Can a homeless child including a undocumented homeless child : Can a homeless child, including an undocumented homeless child, ever be required to show residency in a district in order to enroll in a district school?

Explore the legal rights and responsibilities of the tenant : Describe whether or not Roger has a legal obligation to pay for the damage he caused and determine whether or not Larry would be liable for any direct damage.

Can we infer that differences exist between the four groups : Can we infer that differences exist between the four groups?

Calculate the npv and the irr for each project : calculate the NPV and the IRR for each project

Draw a logic diagram for your circuit : E15: Fundamentals of Digital Systems - Fall 2010 - EXAM 2 PRACTICE. Draw a logic diagram for your circuit, including any necessary gates and flip-flops. You may omit the clock and reset lines for clarity. Your circuit's outputs should directly depe..

What issues zulima and joseph like to face in american court : Shortly thereafter, Joseph arrives in America and successfully recuses his daughter. Zulima and her father then sue Salim in an American court for the return of the $420. What issues are Zulima and Joseph likely to face in an American court?

Calculate the irr, the npv, and the mirr for each project : Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $17,100, and that for the pulley system is $22,..

Operating at a negative to you still get taxed : Interest 60000and tax rate 35%. What is net loss and what is operating cash flow.? So, I calculated EBIT - 155000, EBT - 215000 Here should taxes be 35% of EBT? Confused . If you are operating at a negative to you still get taxed?

User Account

All Pages