What causes the time-disparity ranking problem

Assignment Help Finance Basics

Reference no: EM131488420

Question: 1. What causes the time-disparity ranking problem? What reinvestment rate assumptions are associated with the NPV and IRR capital-budgeting criteria?

2. What is the unequal lives problem in ranking mutually exclusive projects? How do managers deal with it?

3. (IRR calculation) Determine the IRR on the following projects:

a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years

b. An initial outlay of $10,000 resulting in a single free cash flow of $48,077 after 10 years

c. An initial outlay of $10,000 resulting in a single free cash flow of $114,943 after 20 years

d. An initial outlay of $10,000 resulting in a single free cash flow of $13,680 after 3 years.

Reference no: EM131488420

Questions Cloud

Discuss and define the control function of management : Discuss and define the control function of management. Discuss how the scorecard approach fits in to the control function of management.

What are mutually exclusive projects : Briefly compare and contrast the NPV, PI, and IRR criteria. What are the advantages and disadvantages of using each of these methods?

Employee whistle-blowing : Provide an example where employee whistle-blowing is justified and an example of where it is not. Provide support for each example. (ch. 16)

Illustrate how a manufacturing company or a service company : Discussion: "Just-in-Time (JIT)"- Develop three examples that illustrate how a manufacturing company or a service company of your choice uses JIT.

What causes the time-disparity ranking problem : What causes the time-disparity ranking problem? What reinvestment rate assumptions are associated with the NPV and IRR capital-budgeting criteria?

Senior it capstone : The statement of work (SOW) is considered the contract for work to be performed. It identifies all of the key aspects of the project.

Improve the learning management system : Assume we are each tasked with finding ways to improve the learning management system (LMS) currently in use (in our case we use a product called Sakai)

Determine the irr calculation on the given projects : An initial outlay of $10,000 resulting in a free cash flow of $1,993 at the end of each year for the next 10 years.

Enterprise key management policy : 1) Who specifically does this policy apply? (Entities affected by this policy)

User Account

All Pages