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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
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. This is the question please
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