Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 4 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Sep 2017 My Price 10.00

rankings of the projects

The expected cash flows of three projects are given below. The cost of capital is 10 per cent.

(a) Calculate the payback period, net present value, internal rate of return and return on capital employed of each project.

(b) Show the rankings of the projects by each of the four methods and comment on your findings.

Period

Project A (£)

Project B (£)

Project C (£)

0

-5000

-5000

-5000

1

900

700

2000

2

900

800

2000

3

900

900

2000

4

900

1000

1000

5

900

1100

  

6

900

1200

  

7

900

1300

  

8

900

1400

  

9

900

1500

  

10

900

1600

  

Tarragon needs to choose between two mutually exclusive investment projects, each lasting for five years. The company uses the straight-line method of depreciation and its cost of capital is 15 per cent.

Project Alpha would generate annual cash inflows of £200 000 after the purchase of machinery costing £556 000, with a scrap value after five years of £56 000.

Project Beta would generate annual cash inflows of £500 000 after the purchase of machinery costing £1 616 000, with a scrap value after five years of £301 000.

(a) Calculate, for each project, the return on capital employed (ROCE), net present value (NPV), internal rate of return (IRR) and payback period.

(b) State which project, if any, you would recommend. Give your reasons.

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Sep 2017 11:09 PM My Price 10.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)