Project has net present value of zero

Assignment Help Operation Management

Reference no: EM131124704

1) A project has a net present value of zero. What does this mean to the company?

2) Describe two disadvantages of the payback method for capital budgeting decisions?

3) When comparing mutually exclusive projects, the NPV method is used to ___________.

4) You work for a company whose primary long term financial goal is to undertake projects that maximize company value. You have been asked to provide a recommendation with respect to selecting one of two mutually exclusive projects. The first project has an NPV of $150K and an IRR of 10%. The second has an NPV of $120K and an IRR of $12.5%. Which project should you recommend and why? (Show all work)

5) Your company has identified several independent projects that will add value to the company. Unfortunately, the company has an insufficient capital budget to undertake all of the projects. What general recommendation would you make for selecting the appropriate projects?

Reference no: EM131124704

Questions Cloud

Marketing plan-demographic characteristics : This is the next step in creating your marketing plan. Please follow the directions in Week One and reference the marketing plan outline in Appendix A of your text. •Describe your target market. •Identify the consumers who are most likely to buy your..

Describe how you would govern the board : Describe how you would govern the board. What orientation programs would you choose? How would you evaluate the board? What would you plan for a retreat?

Unsuccessful in attracting shoe manufacturers as advertisers : Business Research You have been approached by the editor of Gentlemen’s Magazine to carry out a research study. The magazine has been unsuccessful in attracting shoe manufacturers as advertisers. When the sales force tried to secure advertising from ..

Culture consists of shared organizational values : An organization's culture consists of shared organizational values. These values reflect what the organization stands for and what it believes in and create an environment that influences employee behavior ethically or unethically. Explain the import..

Project has net present value of zero : A project has a net present value of zero. What does this mean to the company? Describe two disadvantages of the payback method for capital budgeting decisions? Your company has identified several independent projects that will add value to the compa..

Organizations be held liable for the security compromised : Should managers and organizations be held liable for the security compromised? Can system owners be held liable? To what extent is the victimized corporation liable to the secondary victims, those whose data was stolen?

Final project package you will need to create project plan : Final Project Package You will need to create a project plan. This plan should be completely integrated and presented in a logical order. It should be written professionally and should be mistake-free in terms of spelling and grammar. The final proje..

What is the average number of jobs waiting for service : Gubser Welding, Inc., operates a welding service for construction and automotive repair jobs. Assume that the arrival of jobs at the company's office can be described by a Poisson probability distribution with an arrival rate of three jobs per 8-hour..

Should agan expand to the two-consultant system : Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.8 customers arrive each hour. Expand to two consultants, each of whom has an average service time of 10 minutes per customer. I..

User Account

All Pages