Exclusive investments projects

Assignment Help Finance Basics
Reference no: EM132124457

A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year for the next seven years; Project Beta requires an initial outlay of $1,100 and will return $350 per year for the next five years. Assuming a 11% required return, calculate the NPV, IRR, Payback Period, PI, and MIRR of each project. Which project is preferable and why?

Reference no: EM132124457

Questions Cloud

Net working capital of the company : Based on this information, the net working capital of the company is:
Balance of retained earnings : What was the beginning balance of retained earnings at the start of this year?
What is net present value in terms of evaluating a project : What is Net Present Value in terms of evaluating a project? What is better NPV or Internal Rate of Return when evaluating?
Determine the rate of return on shareholders : Determine the rate of return on shareholders' capital for each of the financing alternatives if the rate of return on assets turned out to be as follows:
Exclusive investments projects : A firm is considering the two mutually exclusive investments projects. Project Alpha requires an initial outlay of $600 and will return $160 per year
Create a dictionary that will be used to store customer : Create a dictionary that will be used to store customer information Have an infinite while loop.
Market-to-book ratio and the market-to-book ratio : The Company Metallica Heavy Metal Mining needs to diversify its operations. Some recent monetary information shown here:
Describe the various business and it problems : Describe the various business and IT problems that can be caused by lack of common information and an enterprise IM strategy.
What will be the value of? matt account : What will be the value of? Matt's account in 9 years with his quarterly payments if he is earning 6.5?% ?(APR), 11% ?(APR), or 14.5% ?(APR)?

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