User Account

All Pages

Compute the npv and irr for each investment

Assignment Help Accounting Basics
Reference no: EM131629587

Question - Covington Pharmacies has decided to automate its insurance claims process. Two networked computer systems are being considered. The systems have an expected life of two years. The net cash flows associated with the systems are as follows. The cash benefits represent the savings created by switching from a manual to an automated system.

Year System1 System 2

0 $(120,000) $(120,000)

1 - $76,628

2 $162,708 $76,628

The company's cost of capital is 10 percent.

Required: Please show your work.

1. Compute the NPV and IRR for each investment.

2. Show that the project with the larger NPV is the correct choice for the company.

Reference no: EM131629587

Questions Cloud

Should the company change its advertising campaign : Should the company change its advertising campaign? What about SIA's system for measuring service quality? Do you recommend any changes? Why or why not?
How many years must the lathe last : A new lathe costing 60,096 will produce savings of 12,000 per year. How many years must the lathe last if an IRR of 18% was realized
Explain the rule-of-thumb test : Verify by the rule-of-thumb test that the normal distribution with mean 7.8 and standard deviation 2.18 is a good approximation of the binomial distribution.
What is the most successful way to reach potential customers : In your opinion, what is the most successful way to reach potential customers? Describe your advertising "attack" in 1-3 paragraphs.
Compute the npv and irr for each investment : Covington Pharmacies has decided to automate its insurance claims process. Compute the NPV and IRR for each investment
The use of cameras in the courtroom : After reviewing one of the videos available, you should write a paper reflecting on the case and the use of cameras in the courtroom.
Identify one example of a business function or operation : Identify one example of a business function / operation. Explain the business function / operation in the context of business data models.
Find the mean and standard deviation of the random variable : A random variable represents the number of wins in a 12-game season for a football team that has a probability of .9 of winning any of its games.
What are the pros and cons of active patient involvement : Patient Involvement in Health Care Improvement. What are the pros and cons of active patient involvement, and support your response.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe each product in terms of branding

First, visit a local retail store and look at the brand names, package designs, and labels for various products. Choose one product that you think is a "good" example of these product components, and choose one product that you think is a "bad" ex..

  Determine the dollar amount of dividends

Use this information to determine for the 2016 the dollar amount of dividends that will be distributed to: Preferred Stock

  Under gasb rules for the financial reporting

under gasb rules for the financial reporting entitya. component units are included if the primary government is

  Advise ken on choosing a cost driver quantity forcomputing

kens cornerspot a popular university eatery in a competitivemarket has seating and staff capacity to serve about 600

  In august the universal solutions division of jugan

1.nussey clinic uses client-visits as its measure of activity. during may the clinic budgeted for 1800 client-visits

  A company must incur annual fixed costs of 4000000 and

a company must incur annual fixed costs of 4000000 and variable costs of 400 per unit and estimates that it can sell

  Monopolistically competitive equilibrium

Soft Lens, Inc., has enjoyed rapid growth in sales and high operating profits on its innovative extended-wear soft contact lenses. However, the company faces potentially fierce competition from a host of new competitors as some important basic pat..

  Prepare a schedule of expected cash collections for the

the east division of kensic company manufactures a vital component that is used in one of kensics major product lines.

  Recognition of the income or deduction

For each of the following situations, determine the proper year for recognition of the income or deduction if the taxpayer is (1) a cash basis taxpayer and (2) an accrual basis taxpayer:

  Is change finally happening at general motors

Is Change Finally Happening at General Motors? Find evidence that supports your stance; it can be an article or video

  Compute the contribution margin for each departmentcompute

freedom company has three departments. data for the most recent year are presented below dept. x dept. y dept. z sales

  During periods when costs are rising and inventory

during periods when costs are rising and inventory quantities are stable cost of goods sold will bea. higher under fifo

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