Evaluating the two projects

Assignment Help Finance Basics
Reference no: EM133205356

TV-ABMA 5 Corporation, a business that is currently operating as the biggest media in the country is currently evaluating two possible TV shows for its prime-time. The show is planned to be played from 7:00pm-8:00pm every weekdays. The first option is a reality show that will run for three years and the other is a telenovela that will run for four years. Listed below are the expected cash outflows and cash inflows of both projects.

 

Reality show

Telenovela

 

Inflow

Outflow

Inflow

Outflow

Initial investment

Php150,000

Php300,000

Php150,000

Php400,000

Year

 

 

 

 

1

100,000

15,000

90,000

10,000

2

90,000

10,000

120,000

15,000

3

120,000

10,000

100,000

20,000

4

 

 

130,000

25,000

  1. As the financial adviser of the company, what capital budgeting technique are you going to use in evaluating the two projects? Justify why you would use such method.
  2. Using the technique that you choose (your answer in number one), which of the two projects will you choose?

Reference no: EM133205356

Questions Cloud

What factors transformed european societies : Texas Southern University-What factors transformed European societies between 1200 and 1500?
Organizations moving to devops concept or agile methodology : Most of the organizations are moving to devops concept or agile methodology, should the methodology or the concept be chosen based on the nature of the project
Prepare a detailed study of a building material : Wood Construction Management Essay - Prepare a detailed study of a building material for the purposes of preparing a project specification section
How are the plants stabilizing the sediment : How are the plants stabilizing the sediment? Describe a plant that you thought was interesting or did not know prior this section online field trip.
Evaluating the two projects : TV-ABMA 5 Corporation, a business that is currently operating as the biggest media in the country is currently evaluating two possible TV shows for its prime-ti
Describe your dream job : Stanford University-Describe your dream job and then provide a list of the types of stressors that you would expect to be present.
What are four key differences between managers and leaders : Assignment - Leadership and Emotional Intelligence Discussion - What are any four key differences between managers and leaders
Child labor and human trafficking : University Of California Los Angeles-However, there are obviously many problems with child labor and human trafficking.
What you have learned about emotional intelligence : Give three general insights you received from reading this book. How does Ruiz reinforce what we have learned about Emotional Intelligence (EI)?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the expected return of wt stock without? leverage

a. What is the expected return of WT stock without? leverage?

  There are no universally accepted definitions of financial

there are no universally accepted definitions of financial ratios but five of the following ratios are clearly

  Company new required rate of return-porter plumbing

Porter Plumbing's stock had a required return of 12.50% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%.

  Explain depreciation deduction and resulting unrecovered

Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using declining balance depreciation

  Why do real returns matter more than nominal returns

Why do real returns matter more than nominal returns

  What adjustments would have to be made to capital accounts

What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts.

  Changes in an equity market price

An investor can profit on changes in an equity's market price without ever having to actually put up the money to buy the equity.

  How is loan-to-value ratio used in lending practices

Discuss methods a builder might use to assist with a home buyer's permanent financing.

  Come prepared to class even when you are not presenting

Come prepared to class even when you are not presenting. Case discussion is essentially class responsibility. After discussing the basic issues faced by the decision makers you will present your analysis (individually or by group) and propose solutio..

  Ryngaert inc recently issued noncallable bonds that mature

ryngaert inc. recently issued noncallable bonds that mature in 15 years. they have a par value of 1000 and an annual

  What should be the share price after the repurchase

On June 9th, 2018 Harmony Corp announced a tender offer for 10% of its outstanding shares, claiming that they were "undervalued" by the market.

  Compute an amortization schedule

Compute an amortization schedule for a $95,000, 10 Year annual amortization loan, paying 8% payments are to be made at the end of the year.

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