User Account

All Pages

Find the npv of each project

Assignment Help Business Management
Reference no: EM132391041

Consider the following investment opportunities and their associated cash flows

Assume the projects are mutually exclusive and the firm can raise any amount of capital needed at a cost of 12% per year.

Yr. 0 Yr. 1 Yr. 2 Yr. 3

(Investment)

Deal A -44,000 15,000 16,000 30,000

Deal B -30,000 7,000 7,000 30,000

Deal C -30,000 15,000 15,000 10,000

a. Find the NPV of each project. Based on your analysis, which project should be taken?

b. Find the IRR of each project. Based on this analysis, which project should be taken?

c. Which project has the shortest payback period?

d. Which project would you recommend to your client? Why?

Now assume that the projects are independent and can be carried out in parallel if desired.

e. If the firm can raise as much capital as it needs at 12% a year, which project(s) should be undertaken and why?

f. If the firm has a fixed capital budget limit of $60,000, which project(s) should it undertake and why?

(Please Note: at most one of each project is required, and projects can be scaled back proportionately.)

Reference no: EM132391041

Questions Cloud

How many dollars did the bond increase or decrease : If interest rates were to fall 1% how many dollars did the bond increase or decrease?
What is the firm expected rate of return : Walmart's stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a -28% Return.
Describe how an emerging disease is transmitted : Assess basic environmental health principles, theories, and issues. Describe how an emerging disease is transmitted. Describe how an emerging disease is treated
Adult offenders within the correctional system : While the high-level process flow for dealing with juvenile offenders resembles that of adult offenders within the correctional system,
Find the npv of each project : a. Find the NPV of each project. Based on your analysis, which project should be taken? b. Find the IRR of each project. Based on this analysis, which project
Describe the features of the health care system : Mention and describe the features of the health care system and population characteristics common to rural aggregates. As stated in the syllabus present your.
What are the steps you should take to ensure that budgets : What are the steps you should take to ensure that budgets are monitored effectively?
Banking system and federal reserve : Now that you have a general idea about the banking system and Federal Reserve, let's apply this information to your own financial performance.
What is the value 5 years later in nominal dollars : What is the value 5 years later in nominal dollars and real dollars (Show Calculations)?

Reviews

Write a Review

Business Management Questions & Answers

  Consuming for hr practitioners

Pick a Human resource task or function that tends to be time consuming for HR practitioners. Discuss the pros and cons of automating that task or function. also consider both organizational and employee perspectives.

  Explain how motivations and emotions may influence tactics

he divorce settlement had been proceeding well until the third negotiation meeting.- Explain how motivations and emotions may influence tactics and decision in this situation.

  Internal and the sustainable rates of growth

Why do financial managers need to understand the implications of both the internal and the sustainable rates of growth?

  Explain the north american industry classification system

Explain the North American Industry Classification System. - Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?

  Conduct an integrated project to reflect your knowledge

BUS301-Integrated Capstone Project You are required to conduct an integrated project to reflect your knowledge and skills that acquired during your degree study

  Can a dollar buy more or fewer swiss francs as a result

If the United States imports more goods from abroad than it exports, foreigners will tend to have a surplus of U.S. dollars. What will this do to the value of the dollar with respect to foreign currencies?

  Globe build on and extend hofstede analysis

How did project GLOBE build on and extend Hofstede's analysis? What unique contributions are associated with project GLOBE?

  Cyberethics and cyberlaw

What is meant by the term "Cyberethics and Cyberlaw" in relation to the Internet? Which groups of people are most negatively affected by the Cyberethics and Cyberlaw, and why? What are some of the consequences of the Cyberethics and Cyberlawto bot..

  Discuss the three types of control structures

Discuss the three types of control structures. Describe how any one of these control structures impacts your pseudocode and flowchart.

  Customer-based brand equity model

What are some ways marketing communications can contribute to brand equity according to the Customer-based brand equity model?

  Developing an anti-staining deodorant

Three minute pitch that Dr. Biel would make to his colleagues about the merits of his project and his belief that Nivea should invest

  Excellence in business communication

positive or a negative example or an example in which a turnaround took place

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd