Repeat using a discount rate

Assignment Help Business Management
Reference no: EM131217398

1. consider a project that costs $10000 today. It will provide benefits of $4000 at the end of year1, $3500 at the end of year2, and 3500$ at the year of year3. I f the discount rate is 6 percent, will this project be approved using cost-benefit analysis? Would your answer change if the discount rate is

a) 5 percent?

b) 4 percent?

2. consider the following two projects. Both have costs of $5000 in year1. projects 1 provides benefits of $2000 in each of the first four years only. The second provides benefits of $2000 for each of years 6 to 10 only. Compute the net benefits using the discount rate of 6 percent. Repeat using a discount rate of 12 percent. What can you conclude from this exercise?

Reference no: EM131217398

Questions Cloud

Supply and demand curves : What causes the quantity will rise and the effect on price will become ambiguous? What direction will the supply and demand curves go?
Discuss the conditions that helped the rise of civilization : Discuss the environmental conditions that helped the rise of civilization in the Middle East, and how civilization began to change those same conditions.
Research that indicates the effectiveness of each program : Refer to the National Registry of Evidence-based Programs and Practices website to help you successfully complete your paper. Make sure you choose prevention programs and not intervention programs.
Collection of online learning resources-guaranteed : What has the largest (and best) collection of online learning resources-guaranteed?
Repeat using a discount rate : Compute the net benefits using the discount rate of 6 percent. Repeat using a discount rate of 12 percent. What can you conclude from this exercise?
Will the voltage build up for rotation in opposite direction : A cumulatively compounded dc generator is operating properly as a flat-compounded dc generator. The machine is then shut down, and its shunt field connections are reversed
Match or beat the price offered by the rival store : Many retail stores offer to match or beat the price offered by the rival store. Explain why firms that belong to a cartel might make this offer?
Do you agree with feinberg decision rule : Feinberg does not have jurisdiction over claims by states and municipalities. Do you believe his assessment of the place of mental health damages should apply to their claims as well?
Solve the all-in financing cost : Solve the all-in financing cost, expressing the answer in terms of an all-in interest rate before and after-tax. You may assume that interest expenses and fees are tax deductible @35 % in the year-incurred

Reviews

Write a Review

Business Management Questions & Answers

  Briefly describe the two major categories of project

Identify also briefly describe the two major categories of estimating project time also costs. Explain how these are used during the estimating process

  Explain that experience to your classmates

Think about a time in your work personal or school experience where you have held a position that required you to use the Leading function. Explain that experience to your classmates

  What are the issues confronting thomas in this case

What are the issues confronting Thomas in this case? -  How well is Thomas dealing with these issues? -  What suggestions would you have for Thomas in managing this project?

  Role of management in organizations

Describe the three reasons to reach objectives to maintain balance with conflicting goals, to achieve efficiency and effectiveness and why management is needed. Be specific and thorough.

  Explain the sample standard deviation

Compute the upper value (limit) of the confidence interval of the mean if the sample size (n) was 18 the sample standard deviation

  Charge of expanding an existing grocery store by adding

You are in charge of expanding an existing grocery store by adding a new convenience store and gas station business unit. You are in charge of adding a new department to a mall anchor.

  How to be objective and empathetic

Write a memo from my company to the family of my 40 employees that were killed in the Chilean mine disaster...any advice on how to be objective and empathetic?

  Economic opportunities and threats

Analysis of Strategic Management - Explain what major forecasting techniques would you use to identify economic opportunities and threats

  Illustrate about those epa employees who have authority

Illustrate what about those EPA employees who have the authority to make these decisions? Illustrate what kind of thought process do they go through

  Describing entrepreneurial forms

Describe each of the following forms and address advantages and disadvantage of each: What is the most appropriate form of ownership for aggressive entrepreneurial firm?

  Discussion-failure of mco

Discussion: Failure of MCOs From your text readings and other research through the virtual library or web: Discuss the reasons for the failure of some of the first MCOs.

  How to apply knowledge of organizations to organization

In this essay, you will apply the knowledge of organizations to organization, group or situation of choice using Bolman & Deal 2008.

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