Reference no: EM132702029
1. Cash Flow Project 1 Cash Flow Project
1 $7,000 $7,500
2. $1,500 $2,500
3 $6,000 $5,000
4 $2,000 $4,000
The cost of both projects is $15,000
Problem 1: Calculate the pay back for both projects
Problem 2: Calculate the NPV for both projects using the rate of return of 12%
Problem 3: Calculate the IRR for both projects. (PLEASE USE THE IRR CALCULATOR IN YAHOO
OR GOOGLE TO COMPUTE IRR) which project would you take? And why?
Problem 4: What is a financial manager? What is the biggest challenge of a financial manager?
Problem 5: What are the advantages and disadvantages of a partnership? What are the advantages and disadvantages of a corporation?
Problem 6: What is leverage? What are the good points of leverages? What are the bad points of leverages?
Problem 7: Your financial ratios are not similar to other companies in your industry. What can be going on?