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

Help, how to build a earthquake proof building

how to build a earthquake proof building

Assgnment, Sulphuric acid can be made with concentration of 99%. However f...

Sulphuric acid can be made with concentration of 99%. However for different industrial process different concentrations are used. For a specific industrial requirement, 62% H2SO4

Physics, what is electrical transmission and electromagnetic radiation in t...

what is electrical transmission and electromagnetic radiation in the form of energy transfer?

Which scheme provides the best spectrum capacity, Question: (a) What a...

Question: (a) What are the criteria that a frequency planner and a network engineer need to consider during cellular planning and design. (b) Assuming that you work as a c

Tunnel diode, equivalent circuit of tunnel diode

equivalent circuit of tunnel diode

Beam theory method , Here, it is assumed that the crack is effectively long...

Here, it is assumed that the crack is effectively longer than the value measured on the side of the specimen. If one assumes that it is longer by an amount Δ, then the new crack le

What are the elements limiting higher data rate in networks, Question: ...

Question: (a) What are the elements limiting high data rate in cellular networks? (b) Describe the following characteristics of 4G mobile networks: - Always on - RAN A

Tensile strength of core materials , The tensile strength of the core mate...

The tensile strength of the core material in a sandwich structure can be determined using the flat-wise tension fixture shown below. The sandwich is bonded between two al

Balanced mutual fund, Balanced Mutual Fund The mutual fund that objective i...

Balanced Mutual Fund The mutual fund that objective is a balance of stocks & bonds. Balanced funds refer to be less volatile than stock only funds. The return or principal value of

Capital structure, definition of net income approach

definition of net income approach

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