Sketch the two projects npv profiles

Assignment Help Microeconomics
Reference no: EM13691767

Two mutually exclusive alternatives, projects C and D, have the following investments and cash flows:

Project c Project d

Investment period t=0 40,000 40,000

Cash inflows at t = 1 10,000 20,500

Cash inflows at t = 2 10,000 20,500

Cash inflows at t=3 47,000 20,500

a. Calculate the NPV and the IRR of each project. The company's cost of capital is 12 percent.
b. Which of the two projects would you accept? Explain.
c. Sketch the two projects NPV profiles.

Reference no: EM13691767

Questions Cloud

The supply and demand for mandarin-english translators : The supply and demand for Mandarin-English translators
What steps will you take to negate or minimize challenges : What are some of the other types of challenges that you foresee that might affect your relationship with the UPD? What steps will you take to negate or minimize these challenges?
The federal reserve bank are part of a commercials bank : Deposits with the federal reserve bank are part of a commercials bank's a)capital b) reserves c) loans d) lliaibilties
Sunny made a contract with mandy selling : Sunny made a contract with Mandy selling
Sketch the two projects npv profiles : Sketch the two projects NPV profiles.
Estimate the rate of heat loss per metre length of pipe : Estimate the rate of heat loss per metre length of pipe and explain why the thermal resistance of the pipe wall can be ignored.
Develop an alternative design for research study : Develop an alternative design for this research study.
Liquidity preference theory : Liquidity Preference Theory
Should be considered by the chamber president : What are all the issues here that should be considered by the Chamber's president,

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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