You know your assistant calculate the npvs correctly the

Assignment Help Accounting Basics
Reference no: EM13481762

You know your assistant calculate the NPV's correctly. The NPV is after allowing for the outlay. Here are data for five projects.

Projects

Outlay

NPV

@Discount Rate

IRR

A

-$3.6

$11.2

15%

24.2%

B

-$8.9

$13.6

18%

17.1%

C

-$5.0

$4.2

12%

26.3%

D

-$4.2

$5.6

20%

27.9%

E

-11.0

$14.7

16%

22.0%

Assume correct discount rate used and NPV calculated correctly.

a. Which of the above projects is perceived as having the mostrisk?

b. Explain your answer to part a (please provide detailedexplanation to help me understand)

c. If project A and B are mutually excusive, whichone should you take?

Reference no: EM13481762

Questions Cloud

Discuss why using an activity-based system could provide : as a result management is considering moving from a direct-labor based overhead rate to an activity-based costing
Write a short memo to ralph sampson describing the analysis : westfield corporation makes two different boat anchors-atraditional fishing anchor and a high-end yacht anchor-usingthe
Use a vertical method to prepare the 2012 income statement : the accounting records of clear photography inc reflected the folllowing balances as of january 1 2012.cash-
Rsources appendix a the home depot inc annual report in : resources appendix a the home depot inc. annual report in fundamentals of financial accounting write a 1050- to
You know your assistant calculate the npvs correctly the : you know your assistant calculate the npvs correctly. the npv is after allowing for the outlay. here are data for five
What is the minimum selling price of the special order : pro sports inc. manufactures basketballs for the nba. for thefirst 6 months of 2008 the company reported the following
A person borrows 1375 at 115 simple interest a payment of : a person borrows 1375 at 11.5 simple interest. a payment of 320 at the end of 2 years and a payment of 640 is made at
Compute the cash payback period for each project round : the three stooges partnership is considering three long-termcapital investment proposals. each investment has a useful
Calculate the value of net cash flow under the head of : caterpillar is the largest industrywho makes construction equipment. company is interesting to build anew crain which

Reviews

Write a Review

Accounting Basics Questions & Answers

  Company overview milestone

Find two annual reports from competing publicly traded companies of your choice. Prepare an overview of the two companies including a brief synopsis of the industry the companies are in, the market share each company holds, and the length of time ..

  Requirements for a change in accounting principle

Describe the requirements for a change in accounting principle and at least four reasons why companies might implement a change in accounting principle.

  Prepare the property, plant

Lowell Company's December 31, 2012, trial balance includes the following accounts: Inventories $120,000; Buildings $207,000; Accumulated Depreciation-Equipment $19,000; Equipment $190,000; Land Held for Investment $46,000; Accumulated Depreciation..

  Which of the two basic reporting approaches for cash flows

which of the two basic reporting approaches for cash flows from operating activities did the company

  What governing bodies set accounting standards

Financial statements are prepared in accordance with what? What governing bodies set accounting standards? Why do you think financial statements are required to be prepared using the same standards?

  The financial statements of melton manufacturing company

the financial statements of the melton manufacturing company reports net sales of 300000 and accounts receivable of

  Depreciation expense-double declining balance method

The camera cost $9,000 and is expected to last four years. Assume that the camera has a salvage value of 900. Calculate Fairfolk's 2008 depreciation expense relating to the camera, using the double-declining balance method.

  Journal entry for the issuance

Prepare the journal entry for the issuance when the market price of the common shares is $ 168 each and market price of the preferred is 210 each. (Round to nearest dollar.)

  Create an analogy or metaphor

Determine which step in estimating a cost function using quality analysis is the most likely to present the greatest challenge and how you would address that challenge.

  Calculate the issue price of the bonds without prejudice to

present value of 1 for 10 periods at 10 .386present value of 1 for 10 periods at 12 .322present value of 1 for 20

  Preferred stock-calculate dividend amounts

Calculate the cash dividends required to be paid for each of the following preferred stock issues: The semiannual dividend on 6% cumulative preferred, $50 par value, 30,000 shares authorized, issued, and outstanding.

  Net short-term capital gain

During 2010, Gorilla Corporation has net short-term capital gains of $120,000. Net long-term capital losses of $365,000, and taxable income from other sources of $900,000. Prior year's transaction included the following:

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