Explain the differences between the PV and the NPV

Assignment Help Accounting Basics
Reference no: EM133183475

Question - As a project manager of your company you determine whether or not to launch a new project. Your company is willing to invest $3,000,000 for a new project if it can make at least the equal amount ($3,000,000) of the present value (PV) of cash flows in 5 years. Evaluate the factors that you should consider in your investment decision. Explain the differences between the PV and the NPV. What is your decision rule for a new project? Provide any scenario of a new project that you may decide to launch.

Reference no: EM133183475

Questions Cloud

Main purpose of homestead exemptions : Question 1: What is main purpose of homestead exemptions and circuit breakers?
Review instructions here and in the fire protection : Review the instructions here and in the Fire Protection Compliance form with your supervisor before starting so you can prepare for the tasks
Find report for retained earnings : Kelty Company's year-end financial statements reported the following (in millions):
What could be the effect on the loan amount to be borrowed : Holding the interest rate constant and increasing the amortization period of the loan, what could be the effect on the loan amount to be borrowed by Christina
Explain the differences between the PV and the NPV : Evaluate the factors that you should consider in your investment decision. Explain the differences between the PV and the NPV
Calculate a breakeven point : Marie is now launching her own business called, "Brand You", a small boutique logo and marketing company that can help small businesses with their marketing.
Locate the existing building confirmation : The Existing Building Confirmation form will be used to confirm the buildings you will be accessing whose fire protection requirements you will be inspecting
Explain entry-exit theory : Nissan built its factory in Indonesia at the beginning of the New Order period. However, in the early 1990s, Nissan moved its factories from Indonesia to other
Identify the transaction-related audit objective : Identify the transaction-related audit objective(s) and discuss an audit test that could discover misstatements if the controls do not work effectively

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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