User Account

All Pages

What are the project rankings

Assignment Help Accounting Basics
Reference no: EM132613016

Question - A firm has a capital budget of $100 which must be spent on one of two projects, with any unspent balance being placed in a bank deposit earning 15%. Project A involves a present outlay of $100 and yields $321.76 after 5 years. Project B involves a present outlay of $40 and yields $92 after one year. Calculate:

(i) The IRR of each project;

(ii) The B/C ratio of each project, using a 15% discount rate.

What are the project rankings on the basis of these investment decision rules? Suppose that if Project B is undertaken its benefit can be reinvested at 17%; what project should the firm choose? Show your calculations.

Reference no: EM132613016

Questions Cloud

Provide the journal entries for assuming stage of completion : Fexco Construction Company, Provide the journal entries for 2018, 2019 and 2020, assuming that the stage of completion can be reliably estimated.
What is the estimated amount of fire loss on december : On December 31, 2020, a fire destroyed most of the merchandise inventory of an entity. What is the estimated amount of fire loss on December 31, 2020
Microbial diversity of caves assignment : MICROBIAL DIVERSITY OF CAVES Assignment Help and Solution - Must include general introduction and Distribution in different regions of world
Determine what is the market rate of return on the stock : EE Inc. has established a pattern of increasing its dividends by 4% annually and expects to continue doing so. What is the market rate of return on this stock?
What are the project rankings : Project A involves a present outlay of $100 and yields $321.76 after 5 years. What are the project rankings
How developments in information technology have changed : Explain how developments in information technology have changed the nature of the workplace and the practice of management?
Compute what amount will dudas report the bonds : Compute what amount will Dudas report the bonds on its December 20X4 statement of financial position?The market value of the bonds on December 31, 20X4
What is value of this FRA to XYZ : Suppose that 9-month and 12-month LIBOR are 6% and 8% with continuous compounding. What is value of this FRA to XYZ
What the amount of zero-rated supplies to be : Gym Stores purchases, What the amount of Zero-Rated Supplies to be included in the Goods and Services Tax Return (Form GST101A) is

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd