Compute payback period for projects

Assignment Help Business Management
Reference no: EM132714135

Maslow's restaurant is considering two mutually exclusive projects with the following cash flow streams.

Project A Project B

Year 0 ($130,000) Year 0 ($150,000)

Year 1 $40,000 Year 1 $30,000

Year 2 $40,000 Year 2 $50, 000

Year 3 $40,000 Year 3 $25,000

Year 4 $40,000 Year 4 $55,000

a. Compute payback period for both projects

b. Compute net present value of both projects, using a 15% required rate of return.

c. Using interpolation, estimate the internal rate of return for both projects

Reference no: EM132714135

Questions Cloud

Calculate the npv of leasing for col : COL Inc. can either purchase an equipment for $650,000 or lease it from LEN Inc. by making 12 annual lease payments (paid at the beginning of the year)
Compute what price were the updated versions sold : Find At what price were the updated versions sold? If Hi-Tech updates the computers and sells them, net income will increase by $9,000.
Compute the inventory balance as of March : Normal scrap loss on regular product lines is considered negligible. Compute the inventory balance as of March 31
Find what total variable maintenance cost incurred by alisha : Alisha Limited manufactures medical stents for use in heart bypass surgery. What is the total variable maintenance cost incurred by Alisha last year?
Compute payback period for projects : Maslow's restaurant is considering two mutually exclusive projects with the following cash flow streams.
State the importance of identifying risks : State the importance of identifying risks and categorizing them as high, medium or low probability.
How much money will you have in savings : You have just inherited $10 000, which you plan to invest now to earn interest at 12% compounded annually for the next 15 years. How much money will you have
Determine carrying value of the bonds reported in december : Assuming that Mine Company reclassified the investment to financial asset measured at FVOCI carrying value of the bonds reported in the December
What is the dear of the bank total bond position : The correlation coefficient between the two bond portfolios' daily returns is 0.4. What is the DEAR of the bank's total bond position?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

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