Evaluating multiple projects with npv analysis

Assignment Help Financial Accounting

Reference no: EM1312227

Evaluating multiple projects with NPV analysis.

1. You want to bank enough money to pay for 5 years of undergraduate school plus 3 years of graduate school, at $37,000 per year for your child. The savings account will pay an interest rate of 2.0% per year. The first annual payment for tuition and for room and board will be made in 10 years. If you deposit the money today, how much must you deposit? Show calculations.
2. Use the table for the question(s) below.

Project	Cash flow today	Cash flow in one year
"alpha"	-18	23
"beta"	15	-12
"gamma"	15	-20
"delta"	-16	21

Assume that the interest rate is 10%. Show calculations.

a.Rank each of the four projects from most desirable to least desirable based upon NPV.
b.Which project would you invest in first?
c.Are there any projects that you would not invest in?

Reference no: EM1312227

Questions Cloud

Economically interpret the regression results : Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.

Ecommend that prisons be privatized : It has been estimated that private prisons are about 10 percent cheaper, on a every prisoner basis, than public prisons.

Sampling technique for study : Explain why random samples are preferred to nonrandom samples.

Calculate the present values of investment using future : Calculate the present values of investment using future values investments returns

Evaluating multiple projects with npv analysis : Rank each of the four projects from most desirable to least desirable based upon NPV and Which project would you invest in first

Brain transmitting message to muscles. : Describing how the brain transmits the message to muscles. Trace impulse, list the steps in as much detail as possible, from which your brain transmits the message to the suitable muscles in order to step up one step.

Price of a used ford escort has fallen : Over the past year price inflation has been 10% but the price of a used ford escort has fallen from $6000 to $5000. The real price of a ford escort has fallen by Elucidate how much.

Plotting stem-and-leaf plot and boxplot for data : Plot stem-and-leaf plot and boxplot for Mtotal. Illustrate hand calculation of median location and upper hinge location of boxplot, and determine their corresponding data values.

Sources of expenditures in economy : List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.

User Account

All Pages