Review the listed projects by providing npv

Assignment Help Cost Accounting

Reference no: EM13828590

Mr. de Ville, the owner of Tasman Ian de Ville Investments Ltd. (TIDI) has asked you to evaluate five investment projects. TIDI has a $10,000,000 investment budget, an investment hurdle rate of 11.0 %, and the owner has a requirement that all investments have a Payback Period (PBP) of < 3.5 years. Also, Project 2 brings the offices and warehouse up to the current fire code and the listed savings are the "facilitation payments" (e.g. bribes) that will no longer need to be made to inspectors to avoid the office being shut-down.

Year end	Project I	Project 2	Project 3	Project 4	Project 5
00	-S830,000	-5150,000	-$850,000	-S5,000,000	-S350,000
01		50,000	100,000	800,000	250,000
02		50,000	100,000	800.000	250,000
03		50,000	200,000	800.^,	250,000
04		50,000	700,000	800,000	250,000
05			700,000	800,000	-2,750,000
06-30	1,100,000			800,000	250,000

Please review the above listed projects by providing NPV, IRR, PBP, B/Cratio and do not forget social legitimacy needs and select the ones that should be brought to the attention of the owner for investment consideration.

Reference no: EM13828590

Questions Cloud

Major components of a financial planning model : Which of the following is not typically included among the three major components of a financial planning model?

Firm issues-additional paid-in capital : When a firm issues 50,000 shares with a par value of $5 for $22 per share, additional paid-in capital will:

Discuss how betas are measured for individual stocks : Discuss how betas are measured for individual stocks. What is the formula for Financial Leverage? How are dividends paid and how do companies decide on dividend payments?

Cost of capital for a firm with debt-equity split : The company cost of capital for a firm with a 65/35 debt/equity split, 8% cost of debt, 15% cost of equity, and a 35% tax rate would be:

Review the listed projects by providing npv : Please review the listed projects by providing NPV, IRR, PBP, B/Cratio and do not forget social legitimacy needs and select the ones that should be brought to the attention of the owner for investment consideration.

Other industries are performing well are referred : Industries that generally perform well when other industries are performing well are referred to as:

What is the desired profit per unit : Larry Cable Inc. plans to introduce a new product and is using target cost approach. Projected sales revenue is $810,000 ($4.05 per unit) and target costs are $730,000, what is the desired profit per unit

Formula for computing the overhead volume variance : The formula for computing the overhead volume variance is

What were the average operating assets : The Fulmar Division of Jayne manufacturing had an ROI of 25% when sales were $2 million and controllable margin was $400,000. What were the average operating assets?

User Account

All Pages