Discuss the process of cash flow estimation

Assignment Help Finance Basics
Reference no: EM131627664

1. You have a project in mind that will be able to meet the strategic objective of your organization. While evaluating the project, you found out that the project would cost $600,000. Since you are introducing a new potential product in the market, you are very hopeful that your expected inflows will be $30,000 per quarter for the first two years and then $90,000 per quarter thereafter. What is the payback period of this project?

a. 36 MONTHS

b. 38 MONTHS

c. 48 MONTHS

d. 52 MONTHS

2. Your company can accept one of three possible projects. Project A has a NPV OF $30,000, it will take 5 years to complete and the associated cost will be $10,000. Project B has NPV of $60,000,it will take 3 years to complete and the cost will be $15,000.Project C has NPV of $80,000 and it will take 4 years complete and it will cost $40,000.Based on the information, which project would you pick?

a. They all have the same value

b. PROJECT A

c. PROJECT B

d. PROJECT C

3. Discuss cannibalization

4. Discuss the process of cash flow estimation.

Reference no: EM131627664

Questions Cloud

Compare and contrast the two commercials : Include a description of the pathophysiology of the GI disorder and how the medication/herbal alters that pathophysiology.
Explain the simple interest formula method : Bernard McGhee has decided to establish an annuity due of $2,500 annually for 15 years at 7.2% annual interest.
What are the main keys to making an alliance work : What are the main keys to making an alliance work? Why? Explain your answer in a well-constructed and persuasive manner.
Discuss write a paper discussing whether an unfair : Write a paper discussing whether an unfair or deceptive business practice has occurred.
Discuss the process of cash flow estimation : Project C has NPV of $80,000 and it will take 4 years complete and it will cost $40,000.Based on the information, which project would you pick?
Find annuity value at the end of six years : Tiffany Evans created an ordinary annuity with $2,500 payments made semiannually at 6% annually. Find her annuity value at the end of six years.
What are the benefits of planning in the workplace : What do we understand by planning? What are the benefits of planning in the workplace. What should you take into account when prioritizing tasks
Disadvantages associated with matrix structure : Discuss some of the supposed disadvantages associated with a matrix structure.
Define right to form and join a union : An agent can bind the principal in contract under which of the following situations

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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