User Account

All Pages

Calculate the profitability index for projects

Assignment Help Finance Basics
Reference no: EM133074347

The Orange Corporation is trying to choose between the following two mutually exclusive online game projects. Assume the discount rate for the Orange Corporation is 10 percent. Year Project A Project B 0 -40,000 -15,000 1 0 0 2 0 0 3 64,000 25,000

a) Calculate the profitability index for both projects.

b) Calculate the IRR for both projects.

c) Calculate the NPV for both projects.

d) If the two projects are independent, which project(s) should be chosen? Why?

e) If the two projects are mutually exclusive, which project should be chosen? Why?

Reference no: EM133074347

Questions Cloud

Family resource management in career : What experience have you had in supporting children's families? How could you possibly use family resource management in career in early childhood education?
Make ethical decision : Summarize a time when you had to make an ethical decision. Explain how your different options would affect the outcome.
Prescriptive and descriptive analytics : Compare and contrast predictive analytics with prescriptive and descriptive analytics. Use examples.
Overview of ethics and ethical foundations : This module introduced you to an overview of ethics and ethical foundations.
Calculate the profitability index for projects : Assume the discount rate for the Orange Corporation is 10 percent. Year Project A Project B 0 -40,000 -15,000 1 0 0 2 0 0 3 64,000 25,000
Current spot rate on the brazilian real : Assume that the current spot rate on the Brazilian real (BRL) is $0.18USD and that the 90-day forward premium for the BRL is 6% (annualized).
How does tenacity demonstrate confidence at work : How does tenacity demonstrate CONFIDENCE at work and How do you think tenacity's values AND confidence power their success
What is the probability of a weekly payroll : What is the probability of a weekly payroll being between $19,050 and $20,550? (Assume a normal distribution.)
What is the potential downside : What does the term "hedge fund" come from, and why is "hedge fund" a decent description of some hedge funds but a bad description of other hedge funds?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd