1. Payback Analysis
Two new wind-farm tower projects are proposed for a small company that installs them in south western Pennsylvania. Project A will cost $250,000 to complete and is expected to have an annual net cash flow of $75,000. Project B will cost $150,000 to complete and should generate annual net cash flows of $52,000. As a small company, the owner and senior management team are very concerned about their cash flow.
Use the payback period method and determine which project is better from a cash flow standpoint.
Show your work and include any formulas used to calculate PP.
2. Net Present Value
A recent project nominated for consideration at your company has a four-year cash flow of $20,000; $25,000; $30,000; and $50,000. The cost of the project is $75,000.
a. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the NPV.
b. What is the benefit-cost ratio for the project?
c. What would the NPV of the above project be if the inflation rate was expected to be 4% in each of the next four years?
You will be assessed on the correctness of your calculations (40 points) and on presenting your work and results in a professional manner (10 points)
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
“Is this question part of your assignment? We will write the assignment for you. click order now and get up to 40% Discount”
Calculate pay back analysis and Net present value based on the below scenarios was first posted on January 17, 2020 at 5:57 pm.
©2019 “Nursing Assignment”. Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at email@example.com
I absolutely LOVE this essay writing service. This is perhaps the tenth time I am ordering from them, and they have not failed me not once! My research paper was of excellent quality, as always. You can order essays, discussion, article critique, coursework, projects, case study, term papers, research papers, reaction paper, movie review, research proposal, capstone project, speech/presentation, book report/review, annotated bibliography, and more.
Ask a Question. Get an Answer ASAP!