Solution-Calculate the npv for each proposed project

Calculate the npv for each proposed project

Assignment Help Accounting Basics

Reference no: EM133174688

Question - Pseudo Enterprise has ambitious expansion plans for 2022. At a recent Annual General Meeting, the shareholders approved the proposal for further expansion and the board of directors has allocated £330,000 for new projects. As the Senior Manager of Pseudo Enterprise, you have been authorised to conduct the project appraisal for five new projects and submit a recommendation to management on how best to spend £330,000 for new projects.

The projects you are considering have the following information:

Year	0	1	2	3	4
	(£,000)	(£,000)	(£,000)	(£,000)	(£,000)
Project 1	-105	0	180	0	0
Project 2	-150	90	90	90	0
Project 3	-60	30	30	30	30
Project 4	-90	45	45	45	45
Project 5	-180	210	0	0	0

The cash flows are confined to the lifetime of each project. Apart from initial investments that occur at the beginning of the project, all cash flows occur at year end. The following information on the projects is available:

- The cost of capital is 10%,

- Assume no taxes,

- Projects are independent and divisible

Required - Calculate the NPV for each proposed project. If the company was able to undertake all positive NPV projects, what level of NPV could be achieved?

Reference no: EM133174688

Questions Cloud

What were the underlying corporate governance : What were the underlying corporate Governance, legal and ethical issues that led to its demise? What was the nature of the business the directors of One.Tel

Elaborate on any five of the barriers to critical thinking : Do you agree or disagree with the statement, 'Good thinkers are born rather than made? Justify your argument

Explain the concept of managing up : Explain the concept of managing up and the tactics that could be used to accomplish this (short and simple please)

Determine the fbt in respect of the benefits : A company car valued at $30,000 was provided for John's private use on 1 April. Determine the FBT in respect of the benefits

Calculate the npv for each proposed project : Calculate the NPV for each proposed project. If the company was able to undertake all positive NPV projects, what level of NPV could be achieved

Discuss ethical areas in modern business : Discuss ethical areas in modern business. How would you apply the definition of ethics to these articles

Replenish inventory faster and save employees : Walmart first announced the use of shelf-scanning robots in 2017, aiming to replenish inventory faster and save employees time when products run out.

How much of his payments would be able to be included : He pays $1,400 monthly on it. How much of his payments would be able to be included in business overhead insurance coverage

Enemies of the internet : Research the Internet to identify countries that are listed as "Enemies of the Internet" by the group Reporters Without Borders.

User Account

All Pages

Calculate the npv for each proposed project

Reference no: EM133174688

Reference no: EM133174688

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT