Explain the decision of this project and comment on the difference measurement results. Cash Flow C Cash
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cash Flow C Cash Flows (3pts) Cumulative Cash Flow (100,000,00) S $20,000 $ $10,000 S $20,000 S $90,000 $ $30,000 $ $90,000 $ Discounted Cash Flow (100,000.00) S (80.000.00) S (70,000.00) $ (50,000.00) 40,000.00 $ 70,000.00 $ 160,000.00 S Investment Criteria (10pts) Result $33,683.88 1.34 25.94% 3.56 5.04 Cumulative Discounted Cash Flow (100,000.00) $ 17.094.02 $ 7,305.14 $ 12.487.41 S 48,028.50 $ 13.683.33 $ 35,085.47 $ (100,000.00) (82,905.98) (75,600.85) (63,11344) (15,084.93) (1.401.60) 33,683.88 Measurement Decision Net Present Value Accept because NPV is positive Profitability Index Accept because is greater than I Accept because is greater than K Internal Rate of Return Payback Period Reject because the PP is greater than 3 years Discounted Payback Period Reject because the PP is greater than 3 years ment: Explain your decision about this Project. Comment about the different measurement results. (5pts) Cash Flow C Cash Flows (3pts) Cumulative Cash Flow (100,000,00) S $20,000 $ $10,000 S $20,000 S $90,000 $ $30,000 $ $90,000 $ Discounted Cash Flow (100,000.00) S (80.000.00) S (70,000.00) $ (50,000.00) 40,000.00 $ 70,000.00 $ 160,000.00 S Investment Criteria (10pts) Result $33,683.88 1.34 25.94% 3.56 5.04 Cumulative Discounted Cash Flow (100,000.00) $ 17.094.02 $ 7,305.14 $ 12.487.41 S 48,028.50 $ 13.683.33 $ 35,085.47 $ (100,000.00) (82,905.98) (75,600.85) (63,11344) (15,084.93) (1.401.60) 33,683.88 Measurement Decision Net Present Value Accept because NPV is positive Profitability Index Accept because is greater than I Accept because is greater than K Internal Rate of Return Payback Period Reject because the PP is greater than 3 years Discounted Payback Period Reject because the PP is greater than 3 years ment: Explain your decision about this Project. Comment about the different measurement results. (5pts)
Expert Answer:
Answer rating: 100% (QA)
ANSWER Ultimately the best way to measure project performance is to establish your goals ahead ... View the full answer
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date:
Students also viewed these finance questions
-
The working capital at the end of the third quarter was 75% higher than at the end of the second quarter. What was the amount of working capital at the end of the second quarter if the working...
-
At the end of its third year of operations, the Sandifer manufacturing Co had $ 4600,000 in revenue, $3345,000 in cost of good sold $ 451,000 in operating expenses which included depreciation expense...
-
At the end of its third year of operations, December 31, 2014, Delilah Corp. is reporting pre-tax book income of $223,000. The following items are relevant to Delilahs deferred tax computations: 1. A...
-
Busy plc, an all equity-financed firm, has three strategic business units. The polythene division has capital of 8m and is expected to produce returns of 11 per cent for the next five years....
-
When U.S. farmers in the Southwest irrigate their land, salt in the ground soil leaks into the Colorado River. The Colorado River has become so salty that Mexican farmers further down the river...
-
The following table shows the average knowledge of safety practices related to chemical leak emergencies at a chemical plant, based on a sample of 221 chemical plant employees. The employees were...
-
Match each of the following items with its location in the accounting equation. Use the most detailed category appropriate: a. Assets b. Liabilities c. Stockholders' Equity d. Revenues e. Expenses -...
-
William Bevilles computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D = 19,500 units/year Ordering cost S = $25/order Holding cost H = $4/unit/year (a)...
-
Core Fitness Inc, is a high+end athletic gear manufacturer. The production gear involves many complex and specialized activities that, before now, have lacked organization or procedural direction....
-
AW 200 ( 41.7 wide-flange beam (see Table E-1(b). Appendix E) is simply supported with a span length of 2.5 m (see figure). The beam supports a concentrated load of 100 kN at 0.9 m from support B. At...
-
The fundamental notion of present value says that any weight charged in the future is worthless today since its immediate availability has a cost. The alternative valuation of shares through Price...
-
What is the present value of the selling price of a $1,000, 8% bond (interest paid semi-annually) if comparable market interest rates rise to 10% and the bond matures in 14 years?
-
Gaining competitive advantages from innovation is often about how quickly and effectively a manager brings the idea to market. Discuss ways to improve effectiveness and efficiency of procedures to...
-
Microsoft is an AAA-rated firm. It has a 16-year bond with an annual coupon rate of 4% paid semi-annually. The bond is selling for 105. a.What is the yield to maturity of this bond? b.The new Windows...
-
Bupa, Australias largest, privately managed health insurance group, merged with the NBF group, Australias second-largest health insurer. A primary objective of the newly established company was to...
-
Assume that a bond matures in 18 years with a par value of $1,000, and an annual coupon rate of 10%, as well as a market interest rate of 7%. What is the price of the bond?
-
Show how to synthesize 2 - methylhexanoic acid using either the malonic ester synthesis or the acetoacetic ester synthesis and reagent ( s ) from the table provided below. Indicate which synthesis is...
-
Do public and private companies follow the same set of accounting rules? Explain.
-
A firm with four departments has the following closeness matrix and the current block plan shown in Figure. a, What is the weighted-distance score for the current Layout (assuming rectilinear...
-
Your class has volunteered to work for Referendum 13 on the November ballot, which calls for free tuition and books for all college courses except operations management. Support for the referendum...
-
You are in charge of a project at the local community center. The center needs to remodel one of the rooms in time for the start of a new program. Delays in the project mean that the center must rent...
-
Auditors who prefer statistical sampling to non statistical sampling may do so because statistical sampling helps the auditor a. Measure the sufficiency of the evidential matter obtained. b....
-
In each of the following situations, indicate the nature or type of non sampling risk that caused the error to occur. a. Letters were sent to accounts payable vendors for each amount recorded on the...
-
Which of the following audit risk components may be assessed in non quantitative terms? a. Inherent risk and control risk but not detection risk. b. Inherent risk but not control risk and detection...
Study smarter with the SolutionInn App