1.) The following net cash flows are projected for two independent projects. Your required rate of return is 12%.

Year Project A Project B
0 ($130,000) ($650,000)
1 $30,000 $100,000
2 $30,000 $100,000
3 $30,000 $100,000
4 $40,000 $150,000
5 $40,000 $150,000
6 $30,000 $150,000

a. Calculate the payback period for each project.
b. Calculate the NPV of each project.
c. Calculate the IRR of each project.

d. Calculate the MIRR of each project
e. Which project(s) if any would you accept and why?

Post your answers as below: these values are examples

Payback A: 8.9 years B: 9.2 years

NPV A: $40,000 B: $60,000

IRR A: 15.7% B: 17.7%

MIRR A: 15.1% B: 16.7%

since they are independent I would select ....

Answer:

rate 0.12
a. Calculate the payback period for each project. 3 3.33
b. Calculate the NPV of each project. $5,372 ($153,380)
c. Calculate the IRR of each project. 13% 4%
d. calculate the MIRR 13% 7%
e. Which if any project(s) would you accept and why?

If the NPV is negative, that project should not be accepted.

Answers

Answer 1

a) The payback period is the amount of time it takes for an investment to recoup its initial cost. To calculate the payback period for each project, we need to determine how long it takes for the cumulative cash flows to equal or exceed the initial investment.

For Project A:
Initial investment: $130,000
Year 1 cash flow: $30,000
Year 2 cash flow: $30,000
Year 3 cash flow: $30,000
Year 4 cash flow: $40,000
Year 5 cash flow: $40,000
Year 6 cash flow: $30,000

To calculate the payback period, we start by subtracting the cash flow of each year from the initial investment until the cumulative cash flow becomes positive or zero:

Year 1: $130,000 - $30,000 = $100,000 remaining
Year 2: $100,000 - $30,000 = $70,000 remaining
Year 3: $70,000 - $30,000 = $40,000 remaining
Year 4: $40,000 - $40,000 = $0 remaining

The payback period for Project A is 4 years.

For Project B:
Initial investment: $650,000
Year 1 cash flow: $100,000
Year 2 cash flow: $100,000
Year 3 cash flow: $100,000
Year 4 cash flow: $150,000
Year 5 cash flow: $150,000
Year 6 cash flow: $150,000

Using the same process as before, we calculate the payback period for Project B:

Year 1: $650,000 - $100,000 = $550,000 remaining
Year 2: $550,000 - $100,000 = $450,000 remaining
Year 3: $450,000 - $100,000 = $350,000 remaining
Year 4: $350,000 - $150,000 = $200,000 remaining
Year 5: $200,000 - $150,000 = $50,000 remaining
Year 6: $50,000 - $150,000 = -$100,000 remaining (cumulative cash flow is negative)

The payback period for Project B is between 5 and 6 years. Since the cumulative cash flow is negative at the end of year 6, the payback period is considered to be 6 years.

b) To calculate the NPV (Net Present Value) of each project, we discount the cash flows at the required rate of return and subtract the initial investment:

For Project A:
NPV = ($130,000 / (1+0.12)^0) + ($30,000 / (1+0.12)^1) + ($30,000 / (1+0.12)^2) + ($30,000 / (1+0.12)^3) + ($40,000 / (1+0.12)^4) + ($40,000 / (1+0.12)^5) + ($30,000 / (1+0.12)^6) - $130,000
   = $5,372

For Project B:
NPV = ($650,000 / (1+0.12)^0) + ($100,000 / (1+0.12)^1) + ($100,000 / (1+0.12)^2) + ($100,000 / (1+0.12)^3) + ($150,000 / (1+0.12)^4) + ($150,000 / (1+0.12)^5) + ($150,000 / (1+0.12)^6) - $650,000
   = -$153,380

The NPV for Project A is $5,372 and for Project B is -$153,380.

c) To calculate the IRR (Internal Rate of Return) of each project, we find the discount rate at which the NPV is zero. We can use a financial calculator or Excel to calculate the IRR. In this case:

For Project A, the IRR is approximately 13%
For Project B, the IRR is approximately 4%

d) To calculate the MIRR (Modified Internal Rate of Return) of each project, we assume that cash flows are reinvested at the required rate of return. The MIRR is calculated by finding the discount rate that equates the present value of the terminal value of positive cash flows to the present value of the initial investment. Again, we can use a financial calculator or Excel to calculate the MIRR. In this case:

For Project A, the MIRR is approximately 13%
For Project B, the MIRR is approximately 7%

e) Based on the information provided, Project A has a positive NPV of $5,372, while Project B has a negative NPV of -$153,380. Since a positive NPV indicates that the project is expected to generate more cash inflows than the initial investment, Project A would be accepted while Project B would not.

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Related Questions

The Break-Even Point in your business is when


your company has repaid all of its debt

your company has exceeded its start up expectations

your company makes enough in revenue regularly to cover its expenses

your company repays all of the start up cost funding

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Answer: In this letter you want to make sure that you are being clear and concise, so as to avoid any confusion about what your relationship will be in the future (ended). This means that you want to avoid any potential legal liability, and explain yourself in order to show that you are being fair and reasonable in your request.

Explanation:

What percent of the federal budget was spent on education in 2019?

Answers

Answer:

The President requests $59.9 billion in discretionary appropriations for the Department of Education in fiscal year 2019, an $8 billion or 12 percent reduction below the 2018 annualized Continuing Resolution (CR) level.

A local Barnes and Noble paid a $79.99 net price for each hardbound atlas. The publisher offered a 20% trade discount. What was the publisher’s list price?

Answers

Answer:

i believe it would be 63.99

Explanation:

Based on the information given the publisher’s list price is:$99.99.

Using this formula

List price=Net price/(100%-2=Trade discount)

Where:

Net price=$79.99

Trade discount=20%

Let plug in the formula

List price=$79.99/(100%-20%)

List price =$79.99/80%

List price= $99.99

Inconclusion the publisher’s list price is:$99.99.

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1. Calculate the Net Worth when Liabilities are $5,000 and Assets are $6,725​

Answers

The answer is 567.879 percent

1. Give the three (3)
business resources​

Answers

Answer:

Financial Resources

Human Resources

Educational Resources

Explanation:

The role of the Federal Reserve Board of Governors is to:
A. loan money to multinational corporations.
B. set discount rates and reserve requirements.
O c. enforce monetary policy on Federal Reserve banks.
O D. establish new Federal Reserve districts.

Answers

The role of the Federal Reserve Board of Governors is to enforce monetary policy on Federal Reserve banks. Hence, Option C is correct.

What is monetary policy?

In macroeconomics, there is a policy whose duty is to make sure that policies that are made by the  Board of Governors have been applied to all the central banks. This policy is known as monetary policy, which manages the flow or supply of money to all the banks.

This policy also manages the interest rate. Just like other policies, monetary policy also has some tools, With the help of these tools, it is easy to manage the policy. Tools are named as operations for the open market, requirements of the reserve, and lastly rate of discount.

Therefore, Option C is correct.

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when did Toronto​ pearson​Airport​(Canada) start​ using​ technology​ or​ scanner​

Answers

Answer:

Canada's busiest airport will soon start to use artificial intelligence- powered technology to detect weapons. The technology can detect both metallic and non-metallic weapons ranging from  guns and knives to explosives, according to Liberty Defense Holdings Ltd., a  Vancouver-based company which first marketed the technology.  Known as Hex wave, the technology works by capturing radar images, then using  artificial intelligence to analyze them for concealed weapons in bags or under clothing.   Liberty's CEO, Bill Riker explained, "radar essentially is emitting this form of energy,  it's reflecting off a person and it's identifying any items on a person's body that don't  belong on a body." The technology will start getting deployed at Pearson in the Spring of 2020 in a bid to boost  security, according to the Greater Toronto Airports Authority, which runs Pearson.

I need to submit this today, can you help me?


What are Washington D.C.’s people eating habits?

What are some economic facts about Washington DC?

What are some facts about Washington DC?

Culture and customs of Washington DC?

Travel information (Dubai to Washington DC)?

Answers

Answer:

I'm sure they eat well. have u try looking it up on goggle first

When a site is unsafe, it means a. Your personal information may be used in ways you do not want c. Permission to use that site at school is always allowed b. That site is okay to visit often d. All of the above Please select the best answer from the choices provided A B C D

Answers

Answer:A, Your personal information may be used in ways you do not want

Explanation:

If it is a unsafe site than there for your personal information can go places you do not want them to.

When a site is unsafe, it means your personal information may be used in ways you do not want. Thus, option 'A' is the correct option.

What does it mean when a website is unsafe?

External connections to websites with phishing, malware, or unwanted software are known as unsafe domains. Phishing is when a website imitates another one in an effort to fool visitors into divulging personal or financial information. When you visit an insecure website, you run the risk of having your personal information compromised and/or having malicious malware installed on your system.

Additionally, you can fall prey to a phishing attack, or someone else might watch your activity or use your resources for their own gain. If the content you're seeking to view is harmful or misleading, a warning will appear. These websites are frequently referred to as phishing or virus sites. If you clicked on a phishing link, the first thing you should do is immediately unplug your device from the internet.

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A Balance Sheet does NOT show your company's (two answers are correct)


financial position over a specific period of time

liabilities

insurance coverage at a specific date in time

assets

Answers

Answer:

I think its the 1st and 3rd ones

Explanation:

Which of the following is not one of the factors in determining a pension's final value?

A) Years of serivce
B) Level of education
C) Your age at retirement
D) Your highest salary/pay

Answers

Answer:

B

Explanation:

Jerry's job requires that he wear a suit and tie every day to the office. This is most likely a(n) _____ atmosphere.

Answers

Answer:

I would say a formal or business atmosphere.

Explanation:

The main jobs that require suits are often business atmospheres. However, the wearing of a suit is called formal attire.

Answer:

The answer is formal

Explanation:

I took the quiz and got all of the answers right.

Research some examples of organizations that experienced bad publicity and how they dealt with it. Write a paper detailing your findings.

Answers

Answer:

did you finish it cuase i got the same one

Explanation:

Admit the error, apologize, and present a solution if you or your company is receiving negative press as a result of anything you did incorrectly. Negative publicity won't disappear if you ignore it.

What do you mean by Negative publicity?

When damaging material is revealed, negative PR or publicity can take many different forms in company and can impact everything from sales to your reputation.

Various forms of unfavorable PR for your company could include: negative coverage of your business in the media, online, in publications, or on television.

In particular, we contend that by raising product awareness, unfavorable publicity might boost sales and purchase likelihood.

Negative publicity should therefore affect products differently depending on whether they are recognized or unknown. This viewpoint is supported by three investigations.

Your brand's reputation can be severely damaged in a matter of minutes by false information, negative reviews, and nasty social media remarks. Even worse, rumors spread swiftly and negatively impact the reputation of your company.

Negative publicity can have a significant impact on how potential customers see your brand. When customers publicly disparage a company, product, or service, this is known as bad publicity.

Bad publicity includes posting or publishing negative evaluations on websites, review pages, and social media accounts.

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Your factory has a contract to produce a new folding chair. Your role as manager is to find the greatest efficiencies possible throughout the process, so you call a meeting with your planning department. One of your engineers suggests putting more workers on the line but breaking up the tasks into more individual steps. What is your greatest concern regarding this approach? A increased time spent in training B reduced production C poor conditions for workers D cost to hire skilled workers

Answers

Answer:

A

Explanation:

I took the test and it was right

What are the 4 steps to branding

Answers

Answer:

Here are four steps to building a successful brand.

1 Define how you want to be perceived. When your customers have finished using your product or service, how do you want them to describe their experience? ...

2 Organize your business based on this promise. ...

3 Communicate your promise. ...

4 Be consistent.

Explanation:

What is the difference between a salary and an hourly wage?​

Answers

Answer:

Explanation:

A salary stays the same amount no matter how many hours you work. An hourly wage, you get paid for each hour you work; you get payed on WHAT you work.

4.
Contrast the relationship that exists between entrepreneurs and investors in a business
enterprise.​

Answers

Answer:

see below

Explanation:

1. An entrepreneur is the business founder. He or she conceives the business ideas and focuses on growing it.  An investor considers existing business formed by the entrepreneur and focuses on its financial/commercial side.

2. The entrepreneur approaches an investor to finance the business. He draws a business plan and proposals to assure the investor of its viability. The investor approaches an entrepreneur if he is convinced of profits.

3. The entrepreneur manages the business but may also invest in it.  An investor only puts money in the business but is not involved in managing it.

What type of industry would Tim Hortons and McDonalds be classified as?

Answers

they would be classified as restaurants

Mary is earning a weekly salary of $521.60 as a payroll clerk. She has accepted a new assignment in the tax-processing department. In her new position, she will be paid an annual salary of $30,534.00. How much more would she earn per week in her new position?

Answers

Answer:

$65.60

Explanation:

Mary's current is $521.60.

In her new position, she will be earning $30,534.00.  Her new weekly income will be as follows. Assuming one year has 52 weeks.

New pay = $30,534.00/ 52

New pay =587.20

In her new job, she will earn more by( $587.20 - $521.60.) =$65.60

=$65.60

If you have an orientation where you are completing training exercises on a computer, it is probably a ____.
A new hire orientation
B interactive orientation
C reorientation
D mentorship

Answers

Answer: new hire orientation

Explanation:

New employee orientation is used in order to welcome newly employed workers to the organization and this is done in order to integrate the new workers into the system, train them, and make them feel welcomed and part of the organization. .

This helps to boost the confidence of the employees, leads to increase in the retention of employees and also boost employees morale.

Interaction orientation simply means the interaction that takes place between companies and their customers and this is done in order to improve the relationship with customers and achieve organizational goals.

Mentorship simply means having a mentor to guide an individual. Reorientation simply means to change a particular focus or mindset of certain people.

Based on the explanation, the answer is new hire orientation.

Answer:

A

Explanation:

Select the best alternative for the following questions:
i. Which of the following transactions are not recorded in book keeping?
a) Sold Goods on Credit.
b)
Introduce capital in the business.
c) Resignation of marketing manager.
d) Drawing cash from business for personal use.
..​

Answers

Answer:

c. the resignation

Explanation:

this would not affect the bottom line of the company and is therefore irrelevant

The correct answer is c

Which of the following best describes a stock.

A) An incredibly stable investment that is always a safe investment
B) Is insured by the FDIC
C) Represents a share of ownership of a corporation
D) Only sold in the United States

Answers

Answer: C

Explanation: A stock represents a share of ownership of a corporation. Stocks are bought by people so they can get money. If the company's stock they by it from goes well, they get money as well as interest. The answer is C. Hope this helps!

Should voting be mandatory?

Answers

Answer: Yes

Explanation:

Answer:

no

Explanation:

because no

MULTIPLE CHOICE: Scar stole Mufasa's debit card and used it to buy a vacation package to the Savannah. Which account would the money come out of? (choices are savings, checking, certificate of deposit, and online checking)

Answers

Answer:

Savings.

It cannot come from certificate of deposit or online checking, since it is a debit card.

Does anyone know what the definition of expanding manufacturing is?

Answers

Definition - To make your business grown larger or faster by diversifying your current product line

Hope this help :)

What is the advantage of developing criteria for assessing the effectiveness of business products and processes?
A. Assessment criteria are answers.
B. Assessment criteria are inexpensive.
C. Assessment criteria provide you with a list of relevant things to measure.
D. Assessment criteria provide you with a list of people to contact to learn more about process mentoring.

Answers

Answer:

.Assessment criteria provide you with a list of relevant things to measure.

Explanation:

Assessment criteria provides a list by which one can measure success or failure of a business products and processes.

Answer:

c

Explanation:

In which way are competitors stakeholders in a business?
A. They invest in competition
B. Competitors need to provide services
C. Competitors will want to position itself competitively
D. They enjoy learning about the competition

Answers

Answer:

B

Explanation:

l think so if u get it wrong and am sorry

waht do an engineer and an architect do?​

Answers

Create fix, build stuff, and many other things use google you’ll find more info on it too
An engineer builds products and buildings while architects plan out the way the engineers will build for a stable, working build.

Match the financial statement with its description. To match them, click the Description and then click the Financial Report Name

Answers

Answer:

a-3 / b-2 / c-4 / d-1

Explanation:

Notes to financial statements: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.

The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.

Report of independent registered public accounting firm: Attests to the fairness of the presentation of the financial statements.

is a process designed to provide reasonable assurance regarding the reliability of financial reporting.

Management's discussion and analysis of financial condition and results of operations (MD&A): Is written by the company to help investors understand the results of operations and the financial condition of the company.

Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations

Financial statements: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.

are reports prepared by a company's management to present the financial performance and position at a point in time.

Financial statements refer to how company communicates their finance. The financial statement that reflects a company’s profitability is hereby given below.

Financial statements in sheets

The various accounting activities that precedes financial statements are hereby matched below:

A. Statement of retained earnings or owner's equity

Include information of owner's retained earnings and dividends.

B. Income statement - Revenues

Shows revenues and expenses over a period of time.

C. Statement of cash flow

shows money moving in and out, categorized by operations, investing and finance

D. Balance Sheet

A snapshot of a company's assets, liabilities and equity at a specific moment in time.

Therefore, the answers are Statement of retained earnings or owner's equity, Income statement - Revenues, Statement of cash flow, Balance Sheet respectively.

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Sam has take-home pay every month of $800. He anticipates that his expenses will add up to $675 for the month. In a zero-based budget, why is it important that she put the extra $125 in SOME budget category? Where might you suggest that Sam put the extra $125?

Answers

Answer:

Second savings account

Explanation:

Life is full of surprises... repairs or emergency cases this would be helpful to have

Answer:

In a zero based budget, your income needs to add up to zero at the end of every month. For that reason I recommend that if he still has money left over after paying bills and other expenses he should put in savings.

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