User Account

All Pages

Cash flows of the three independent projects

Assignment Help Business Economics
Reference no: EM131950686

Cavu Air Inc., a drone manufacturer, is reviewing its annual budget. It is considering investments in three different technologies. Consider the following cash flows of the three independent projects. Assume a discount rate of 13% percent. The company has $20 million to invest in projects this year.

Required return is 13%

Annual cash flow

Projects A B C

Year 0 $(18,000,000) $(12,000,000) $(20,000,000)

Year 1 $22,000,000 $10,000,000 $18,000,000

Year 2 $29,900,000 $25,000,000 $32,000,000

Year 3 $8,500,000 $20,000,000 $20,000,000

Based on the NPV, rank these investments.

Reference no: EM131950686

Questions Cloud

Stock values using the capital asset pricing model : Our discussion topic concerns the calculation of stock values using the Capital Asset Pricing Model (CAPM).
Adapt to for societal value creation : What are the usual market approaches (supported by traditional banking) that one can adapt to for societal value creation?
Signs of inflation and the consensus : Recently there have been some signs of inflation and the consensus is building that interest rates in the US are likely to rise over the next year or so.
Discuss the purpose of optimizing capital structure : The purpose of optimizing capital structure is to select that proportion of various forms of debts and equities that maximizes the firm's value.
Cash flows of the three independent projects : It is considering investments in three different technologies. Consider the following cash flows of the three independent projects.
What is the internal rate of return : Wing Air, Inc. has a project with the following cash flows:
What inference can you draw from the numbers collected : Note that the fiscal year for the federal government is October 1 - September 31. What inference can you draw from the numbers collected?
Summarize the article in detail : Read the article and perform the following: Article: The Future of Shopping (By Darrell K. Rigby) (a) summarize the article.
What would we expect their average walking speed to be : Speed 6.4 6.2 5.9 5.2 4.4 3.8 3.2 If a person weighs 70 kg, what would we expect their average walking speed to be? Round to 1 decimal.

Reviews

Write a Review

Business Economics Questions & Answers

  Discuss the importance of laws and the requirements

Discuss the importance of laws and the requirements to amend them regularly. Cite examples from the perspective of Oman and explain with evidence the importance, advantages and disadvantages of the commercial agreements between Sultanate of Oman and..

  Procedural and object-oriented programming

Discuss the differences between procedural and object-oriented programming. Now that you have learned both techniques, which method do you prefer?

  What is the price it charges to its consumers

A firm faces a demand where q=20-P. q is quantity demanded, P is price. Its total cost function is TC = 2q^2 + 2q + 20 . How many should it produce to maximize profit? What is the price it charges to its consumers?

  Product or service offered and global consumption

Describe the product or service including brand/logo and packaging. In addition, use the following link, and visit the globalEdge.

  Labour markets in professional sports

In reference to labour markets in professional sports, discuss how players are paid.

  Level of steady- state consumption per worker in alpha

The economy of Alpha can be decribed by the Solow growth model. The following are some characteristics of the Alpha economy: What is the steady-state growth rate of output per worker in Alpha? What is the steady- state growth rate of total output in ..

  Major debates over macroeconomic policy

Please read and follow the instructions I need a well written paper that flows from each paragraph to the next and is original work NO PLAGIARISM (will submit to Turnitin)

  Explain how gdp is measured in your country

Explain how GDP is measured in your country - explain who would benefit directly and who would lose directly from such restrictions.

  Compute how much extra income the garbage company

Compute how much extra income the garbage company could earn each year if it invests the money as described by the newspaper

  Expect to provide an average return

Future value of an annuity Your client is 36 years old; and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year; and you advise her to invest it in the stock market, which you expec..

  1the approved budget for 1997 reduced government spending

1.the approved budget for 1997 reduced government spending in housing and urban development health and human service

  Congressional and executive policy mandates

The National Bureau of Water Projects is considering the following projects. Congressional and executive policy mandates a discount rate of 10%.

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