Rank the projects using payback period

Assignment Help Finance Basics
Reference no: EM131982231

Problem: You have just been hired to analyze the following projects for a start-up company. The CEO of your company has asked you to rank the projects and recommend the four best that the company should accept.

In this assignment, only the quantitative considerations are relevant. No other project characteristics are deciding factors in the selection, except that management has determined that projects 7 and 8 are mutually exclusive. All projects are believed to similarly risky. The firms' weighted average cost of capital has never been estimated. In the past, analysts have simply assumed that 10% was an appropriate discount rate (although certain officers of the company have recently asserted that the discount rate should be much higher).

To stimulate your analysis, consider the following questions:

Question: Rank the projects using payback period.

Reference no: EM131982231

Questions Cloud

What would have been the average return on the portfolio : Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year
What is the maximum possible current in the circuit : What is the maximum possible current in the circuit if the area of the target is 600 mm2?
Assuming a totally inelastic collision : Assuming a totally inelastic collision (meaning the incident photons are absorbed by the black object) and ignoring friction, what is the resulting acceleration
What is the maximum number of electrons : What is the maximum number of electrons per second the beam can cause to be ejected from the metal?
Rank the projects using payback period : You have just been hired to analyze the following projects for a start-up company. The CEO of your company has asked you to rank the projects and recommend.
What is the de broglie wavelength : What is the de Broglie wavelength of a 0.17-kg hockey puck moving at 55 m/s?
Find the current market value of the stock : Home Parties is paying an annual dividend of $1.25 every other year. The last dividend was paid last year. The firm will continue this policy until two more.
Develop a project management plan : NEF3101 PROJECT MANAGEMENT ASSIGNMENT - DEVELOP A PROJECT MANAGEMENT PLAN. You have to write everything on behalf of a company named ALPS
Under what conditions you think a company should choose saas : Under what conditions do you think a company should choose SaaS over traditional outsourcing? Explain your views and discuss them with your peers.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe some other uses for a company’s cash

Describe some other uses for a company's cash. How could these uses benefit shareholders more than a stock repurchase?

  Is it worth inspecting all units at this point

If the faults are left, all parts will be found and corrected further down the line at a cost of $8. Is it worth inspecting all units at this point?

  How much does a share of preferred stock cost today

Fifth National Bank just issued some new preferred stock. The issue will pay a $7 annual dividend in perpetuity, beginning five years from now.

  Compute the z score for each company

According to the Altman model, which of these firms is most likely to experience financial failure?

  What would the new 39 percent bubble rate have to be

Why do you think the marginal tax rate jumps up from 34 percent to 39 percent at a taxable income of $100,001, and then falls back to a 34 percent marginal rate at a taxable income of $335,001?

  Prepare a horizontal analysis of the balance sheet data for

the comparative balance sheets of ramsey egyptian buffet are presented below.ramsey egyptian buffetcomparative balance

  Forms of contemporary american theatre

This chapter deals with many forms of Contemporary American Theatre that are outside the "norm" or the "mainstream" of commercial entertainment.

  Improve on the simple interrupted time series design

Discuss how the interrupted time series design with a reversal and the interrupted time series design with multiple replications improve on the simple interrupted time series design.

  State your null and alternative hypotheses

Various studies indicate that approximately 11% of the world's population is left handed. You think this number is actually higher. You take an SRS of 212 people and find that 27 of them are left handed. Test your claim at the 5% significance leve..

  Discuss problem of velociraptor skeleton

Your family owns a velociraptor skeleton that is currently valued at $95.9 thousand. Your grandfather, being an avid fossil collector, bought it 50 years ago.

  Number of cars crossing a bridge

A Poisson distribution was fitted to data for the number of cars crossing a bridge in forty successive 6-minute intervals of time. The sample mean was calculated from the data to be ??¯ = 2.875 and this value was used as an estimate of the populat..

  Current market value of ordinary share

Brine investment limited wishes to raise funds amounting to 10 million to finance a project in the following manner.

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