Which project would you select

Assignment Help Financial Management

Reference no: EM131924998

As a hydrologist, you have identified the following five different treatments for reducing sedimentation within the watershed.

Project : Initial Investment NPV IRR

A $ 100,000 $50,000 .13

B $1,000,000 $245,000 .09

C $800,000 $100,000 .14

D $2,000,000 $750,000 .11

E $ 600,000 $-75,000 .02

The discount rate used by the watershed district on its projects is 3.5%.

What if the district manager tells you that you have unlimited project funding and the five options are not mutually exclusive, not divisible, and not repeating?

Which project(s) would you select?

Reference no: EM131924998

Questions Cloud

What are the two general types of fiscal policy : What is fiscal policy? Who are the parties involved in creating fiscal policy in the U.S. economy? What are the two general types of fiscal policy?

Should hudson consider entering the industrial furniture : The firm is now considering entering the more competitive industrial furniture market where volumes are higher but pricing is more competi- tive.

How much will hulls monthly payment be : Hull wants to borrow a car. After making a cash payment for tax, title, and a down payment, he will finance $32, 445.

What is the incremental savings of buying the valves : The company has an offer from Duvall Valves to produce the part for $2,000 per unit and supply 1,000 valves (the number needed in the coming year).

Which project would you select : What if the district manager tells you that you have unlimited project funding and the five options are not mutually exclusive, not divisible, and not repeating

Identify which financial statement would be most critical : Identify which financial statement would be most critical for management between the Balance sheet, Income statement and Cashflow statement and why?

Consider the extensive safety apparatus for elderly to move : You have hust became the manager of an assisted living facility for elderly but ambulatory ( able to move without assistance) clients.

What is the total value of the firm today : You own 25% of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all equity firm.

What is the amount of the cash flow : A $218,000 project has equal annual cash flows over its 7-year life. If the discounted payback period is seven years and the discount rate is 0%.

User Account

All Pages