Decide on the best investment choice

Assignment Help Business Management
Reference no: EM131612844

Brad and Nerida are considering two alternative investments.Option 1 requires an outlay of $10 000 and after 2 years is expected to bring a cash flow of $1500 p.a for the next 3 years. Then the investment would be terminated and they would get their $10 000 back. Option 2 requires an outlay of $15 000 and is expected to bring a cash flow of $1200 for each of the next 5 years. They would expect to sell the investment for $17 500. Explain how net present value calculation would help them to decide on the best investment choice.

Reference no: EM131612844

Questions Cloud

Would you want to be covered under such a plan : What do you think are the pros and cons of such a plan? Would you want to be covered under such a plan?
Evaluating real estate loan applications : Determine the factors that a lender should consider when evaluating real estate loan applications. Support your answer with two examples.
Discuss what is intelligence : what is intelligence. Do you think intelligence is something you can develop. Why do you feel the way you do about that
Public versus private sector institutions : Medicare and Medicaid, Prospective Payment System, and the trend shift from private insurance to HMO.
Decide on the best investment choice : They would expect to sell the investment for $17 500. Explain how net present value calculation would help them to decide on the best investment choice.
Create three to four graphic representations of that data : Create three to four graphic representations of that data. This can be done using charts, graphs, tables, and so on. Feel free to be creative.
What is the effective annual yield on the debentures : The coupon rate is 6.25%pa, with coupons paid quarterly. What is the effective annual yield on the debentures?
Discuss graphical depiction united states coast guard : Discuss the organization using a chart or other graphical depiction United States Coast Guard and Department of Homeland Security.
Resource to determine the corporate tax rate : What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally?

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