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Capital Budgeting Unit 5 Assignment

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Capital Budgeting Unit 5 Assignment;Please don?t copy from internet.;1. Describe the Net Present Value (NPV) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using NPV?;2. What is the payback period statistic? What is the acceptance benchmark when using the payback period statistic?;3. Describe the Internal Rate of Return (IRR) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using IRR?;4. Describe the Modified Internal Rate of Return (MIRR) method for determining a capital budgeting project's desirability. What are MIRR's strengths and weaknesses?;5. Compute the NPV statistic for Project Y and tell [advise] whether the firm should accept or reject the project with the cash flows shown in the chart if the appropriate cost of capital is 12 percent.;Project Y;Time;0;1;2;3;4;Cash Flow;-$11,000;$3,350;$4,180;$1,520;$2,000;(Cornett, Adair, & Nofsinger, 2014).;6. Compute the payback period statistic for Project B and decide whether the firm should accept or reject the project with the cash flows shown in the chart if the maximum allowable payback is three years.;Project B;Time;0;1;2;3;4;5;Cash Flow;-$11,000;$3,350;$4,180;$1,520;$950;$1,000;(Cornett, Adair, & Nofsinger, 2014).;Submit your completed assignment as an attachment in the assignment area. You may use either a Word document or an Excel spreadsheet for your work, but not both. Prior to submitting your assignment, review the Estimating Risk and Return Scoring Guide to ensure you have met all of the requirements and as a self-assessment of your work.

 

Paper#78077 | Written in 18-Jul-2015

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