Net present value (npv), Elaborate on why the net present

Net present value (npv)

Assignment Help Finance Basics

Reference no: EM1327174

Elaborate on why the net present value (NPV) of a relatively long-term project is more sensitive to changes in the cost of capital than is the NPV of a short-term project. Provide two good examples of NPV that support your position.

From the e-Activity, analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low.

Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2) such projects. Provide an appropriate example of such a change—or the lack of one—to support your position.

Reference no: EM1327174

Questions Cloud

Employee surveillance - provide a justification : Suggest at least three methods for an employer to monitor its employees’ use of company equipments. Provide a justification for your response

Developing a wbs for this project : Determine the main advantages of developing a WBS for this project. Support your response.

Anchoring bias and herding behavior : Determine two (2) critical ways in which anchoring bias and herding behavior contribute to market bubbles.

Methods of using stocks and options : Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

Net present value (npv) : Elaborate on why the net present value (NPV) of a relatively long-term project is more sensitive to changes in the cost of capital than is the NPV of a short-term project. Provide two good examples of NPV that support your position.

Forecasting conclusions that support tfc’s decision : From the scenario, cite your forecasting conclusions that support TFC’s decision to expand to the West Coast market. Speculate as to whether or not the agency conflict discussed in the scenario could become a roadblock to your conclusions.

Process for distribution policy and dividend policy : Discuss all the factors that influence this decision process in question. * From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company.

Discuss the tester and developer relationship : Discuss the tester and developer relationship within spiral development methodology. You may use your personal experiences to support the arguments.

How realistic is it for a company : Is it really essential for every software company to be CMM compliant or certified.

User Account

All Pages