User Account

All Pages

Npv, finance, Other Engineering

Assignment Help:
Problem 1
Suppose a company is considering two independent projects, Project A and Project B. The cash outlay for Project A is $14,000. The cash outlay for Project B is $20,000. The company’s cost of capital is 12%. The following table shows the after-tax cash flows. For each project, compute the NPV, the IRR, the MIRR, and indicate the accept/reject decision.
Year
Project A
Project B
1
$4800
$6700
2
$4800
$6700
3
$4800
$6700
4
$4800
$6700

























Problem 2
Suppose a company is considering two investment projects. Both projects require an upfront expenditure of $30 million. The company estimates that the cost of capital is 10% and that the investments will result in the following after-tax cash flows (in millions of dollars). Complete parts (a) through (e) below.

Year
Project A
Project B
1
$28
$10
2
$20
$15
3
$10
$20
4
$5
$25

Find the regular payback period for each project.
Find the discounted payback period for each project.
Assume that the two projects are independent and the cost of capital is 10%. Which project or projects should the company undertake? Base your results on the NPV.
Assume that the two projects are mutually exclusive and the cost of capital is 5%. Which project or projects should the company undertake? Base your results on the MIRR.
Explain why quantitative measures may not always be the best way to evaluate a project.

Related Discussions:- Npv, finance

Light-emitting diode, Light-emitting diode: One of the most common ligh...

Light-emitting diode: One of the most common light sources used in electronics is the "Light Emitting Diode" (LED).  A LED is a two terminal semiconductor device comprising a p

Feathering the propeller, Feathering the propeller: If there is an engi...

Feathering the propeller: If there is an engine failure in flight, the propeller would windmill creating drag and increasing any damage that had occurred in the engine. Feathe

Power system analysis, I need a project in Load impact in power flow((const...

I need a project in Load impact in power flow((constant power, constant impedance, constant current, induction motor). Report from 3 articles source and simulation in powerworld s

Assignment, I paid for and attached module 16 for answers this morning but ...

I paid for and attached module 16 for answers this morning but received answers for module 15. How can I get the correct set of answers for module 16 please

Dc load line for a diode , dc load line for a diode & same for circuit con...

dc load line for a diode & same for circuit consisting of supply voltage in series with resistance & diodes

Applied Physics, what types of fringes will be formed if white light is use...

what types of fringes will be formed if white light is used in a Michelson''s interferometer

Which type of financing is appropriate to each firm?, .which type of financ...

.which type of financing is appropriate to each firm?

Logic gates, Logic Gates: The term logic in electronics refers to the r...

Logic Gates: The term logic in electronics refers to the representation and logical manipulation of numbers usually in a code employing two symbols. i.e., bits. An electron

Introduction for cost reduction and cost control, Write question here...i w...

Write question here...i want all the techniques objectives tools used limitations for cist control and cost objectives

Mosfet, matlab program for studying the characteristics of n channel enhanc...

matlab program for studying the characteristics of n channel enhancement type mosfet

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd