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

Use of a microprocessor and a microcontroller, Question: a) Differenti...

Question: a) Differentiate between the prime use of a microprocessor and a microcontroller. b) Describe why the design approach of the microcontroller must mirror that of t

About acidityb of floure, why wehabve to determine the acidity of floure

why wehabve to determine the acidity of floure

Firing order, FIRING ORDER If in multi cylinder engines, various cyli...

FIRING ORDER If in multi cylinder engines, various cylinders are made to fire one after the other, interference between adjacent cylinders would occur, since these may have o

Engineering Management, what is the best Master thesis that can be done i...

what is the best Master thesis that can be done in this major ?I need suggestions regards

Types of engine, TYPES OF ENGINE: The internal combustion engines for the ...

TYPES OF ENGINE: The internal combustion engines for the automotive use may be classified according to the following considerations: Engine cycle Number of strokes F

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

Engineering signals, Engineering Signals A signal is a variation of a m...

Engineering Signals A signal is a variation of a measurable quantity that conveys information about the behaviour of a system. • A signal can depend upon a single variable o

Working capital, 5. From the following details you are required to make an ...

5. From the following details you are required to make an assessment of the average amount of working capital requirement of Hindustan Ltd. Particulars Average period of credit E

Control surface effectiveness and reversal, Control Surface Effectiveness a...

Control Surface Effectiveness and Reversal To discuss the effectiveness and loss of a control surface, we allow a rigid rotation δ of the flap set by a flight control system (o

Creep, strain rate on creep

strain rate on creep

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