Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
P&H Industry Ltd is considering to launch a new product which will require the company to buy a new equipment. The company was offered two following options. Each option will last 4 years and have no salvage value at the end. The company's required rate of return for all investment projects is 7%. The cash flows of the projects are provided below.
Option A
Option B
Cost
$550,000
$560,000
Future Cash Flows
Year 1
240 000
250 000
Year 2
260 000
Year 3
225 000
230 000
Year 4
235 000
problem a) Identify which option of equipment should the company accept based on simple pay back method if the payback criterion is maximum 2 years?
problem b) Identify which option should the company accept based on Net Present Value (NPV) method? (4 marks)
problem c) If there is a conflict between simple payback method and NPV, which option the company should choose and why is it?
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: - Explain the goals and uses of special journals.
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.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
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, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd