Finance:net present value,irr and depreciation.
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1. You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and 10.75% for project B. Which project should you accept and why?
project A; because its NPV is about $335 more than the NPV of project B
project A; because it has the higher required rate of return
project B; because it has the largest total cash inflow
project B; because it returns all its cash flows within two years
project B; because it is the largest sized project
2. What is the internal rate of return on an investment with the following cash flows?
5.93%
5.96%
6.04%
6.09%
6.13%
3. LiCheng's Enterprises just purchased some fixed assets that are classified as 3-year property for MACRS. The assets cost $1,900. What is the amount of the depreciation expense for year 2?
$562.93
$633.27
$719.67
$844.36
$1,477.63
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Solution Summary
The problem set decks with problems in finance:net present value,internal rate of return,depreciation etc.
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
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