What is the objective of project risk analysis

Assignment Help Financial Accounting
Reference no: EM132999649

Question - Gabby PLC has an investment opportunity as follows:

Initial investment $45,000

After-tax cash flow

Y1 14000

Y2 14000

Y3 10000

Y4 10000

Y5 8000

Discount rate = 8%

Required -

a) Calculate the NPV and explain your decision on this project based on the shareholder point of view.

b) What is the objective of project risk analysis, and why is it critical to the investment decision-making process?

c) Damian Taylor aims to accumulate $2,000,000 for his retirement and he has another 35 years for his retirement. He selected a super fund that earns a 4% return annually. Calculate the amount which Damian must have to invest today. If he can switch to another fund, which gives a 14% annual return, calculate how soon he can enjoy his retirement life.

Reference no: EM132999649

Questions Cloud

Find the before-tax cost of retained earnings : Given the share of $25, current dividend of $1.2 and growth rate of 4.6% and a company tax rate of 35%, find the before-tax cost of retained earnings
Why should not those who commit guilty act always be held : The law recognizes certain defenses to crime. Why shouldn't those who commit the guilty act always be held accountable for their actions?
Calculate the materials price variance and materials : During August, 223,560 pounds of raw materials were used that were purchased at $ 0.80 per pound. Calculate the materials price variance and materials
Why have chosen to pursue a doctoral degree in public policy : Explain why you have chosen to pursue a doctoral degree in public policy, and in your chosen cognate. (If you have not chosen a cognate, explain why.)
What is the objective of project risk analysis : What is the objective of project risk analysis, and why is it critical to the investment decision-making process
What characteristics identify proactive police agency : What do you see as the greatest benefit of implementing a proactive style of policing? What major characteristics identify the proactive police agency?
Calculate the size of the new monthly payment : If the mortgage is renewed for a further three-year term at 8% compounded semi-annually, calculate the size of the new monthly payment
What types of communications and information management : What types of communications and information management systems can you utilize to ensure that psychological assistance is provided for first responders?
How the preventive steps would take impact the performance : How the preventive steps you would take impact the performance of the police officers and improve their ability to address the problem

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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