Considering expansion of their data storage system

Assignment Help Financial Management

Reference no: EM131932331

Google is considering an expansion of their data storage system, and the CFO and her financial team have estimated and calculated the NPV of the cash flows of two independent projects. One project is in Indianapolis, and has a NPV of $200,000 and an Modified IRR of 16.5%, while the second project is in San Diego has an NPV of negative $222,000 and a Modified IRR of approximately 8%. The CFO says she is comfortable that a 10% return over the life of the projects is an appropriate return for the risks undertaken. What do you recommend the CFO propose to the company's Board of Directors?

A. Don't do either project as the returns are not compelling.

B. Approve both the Indianapolis and the San Diego projects.

C. Approve only the San Diego project because it has the higher NPV.

D. Approve only the Indianapolis project because it has the higher Modified IRR.

Reference no: EM131932331

Questions Cloud

Find out the proportion of american adults : What would be an appropriate sample size to find out the proportion of American adults who smoke, if you want a margin of error of 2%

Determine the apr of loan to the nearest one-half of percent : Determine the APR of the loan to the nearest one-half of a percent.

Calculate the probability of getting three tickets : Calculate the probability of getting three tickets within a 12 month period for a driver who averages one speeding ticket every 18.6 months.

How can a growth mindset help you in your academic work : In your own words, describe growth mindset. How can a growth mindset help you in your academic work? 75 words

Considering expansion of their data storage system : Google is considering an expansion of their data storage system, What do you recommend the CFO propose to the company's Board of Directors?

Represent the number of underinflated tires on an automobile : Which of the following p(x) functions specifies a legitimate distribution for x, and why are the other two not legitimate?

What are possibilities that the residents will ever achieve : If Manila disrupts this squatter settlement, what are possibilities that these residents will ever achieve quality of life they appreciate in North Cemetery?

Describe your career goals in the social work profession : Please discuss your interest in entering the social work profession. Describe your career goals in the social work profession.

Shows the payments and receipts of both parties : Prepare a spreadsheet that shows the payments and receipts of BOTH parties, for swap and for the position on their books and for BOTH interest rate scenarios.

User Account

All Pages