What has caused the ranking conflict

Reference no: EM13301416

Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:

_________________________________________________________________________________

YEAR PROJECT A PROJECT B

0 - $100,000 -$100,000

1 32,000 0

2 32,000 0

3 32,000 0

4 32,000 0

5 32,000 $200,000

______________________________________________________________________________

The required rate of return on these projects is 11 percent.

a. What is each project's payback period?

b. What is each project's net present value?

c. What is each project's internal rate of return?

d. What has caused the ranking conflict?

e. Which project should be accepted? Why?

Reference no: EM13301416

Questions Cloud

Define what is the vapor pressure of ethanol : The vapor pressure of ethanol at 34.7 degrees Celsius is 100mmgh, and the heat of vaporization of ehanol is 38.6 kj/ mol. What is the vapor pressure of ethanol in mm Hg at 65.0 degree celcius

How many oscillators are in this block : A carbon nanopaeticle contains 7000 carbon atoms. According to the Einstein model of a solid, how many oscillators are in this block

Explain water on the surface of the crystals of a hydrate : What is the difference between water on the surface of the crystals of a Hydrate and Hydrate water itself

Define the molarity of the resulting solution : please solve if 15.0 mL of 4.5M NaOH are diluted with water to a volume of 500.0 mL what is the molarity of the resulting solution

What has caused the ranking conflict : What is each project's internal rate of return? What has caused the ranking conflict?

How far up the ramp will it stop moving : a ball mass of 5 grams and radius of 1.5 cm is rolled up a frictionless ramp that is 30 degrees above horizontal with an iniitial velocity of 4 m/s

Explain the annual production of acetyl salicylic acid : If the annual production of acetyl salicylic acid in the U.S.A were converted to 5-grain aspirin tablets, approximately how many tablets would there be for each person? Assume that the population is about 3.0 X 10 ^8. Show Calculation

What is the capacitance of each capacitor : Two identical capacitors are connected in parallel to an ac generator that has a frequency of 574 Hz and produces a voltage of 24 V. What is the capacitance of each capacitor

What is the theoretical market value of the bonds : What is the theoretical market value of the bonds using semiannual analysis?

User Account

All Pages