Purchase Solution

Finance: NPV, IRR, Payback

Not what you're looking for?

Ask Custom Question

You have two projects. You must calculate the NPV, IRR, and payback for both. These projects may be made up and very simplified but must show numerical examples. Explain the value of NPR, IRR and payback. Of the two projects you've created, which project would you invest in if the projects were mutually exclusive versus independent for each of the methods. Draw the NPV profiles of the two projects. Once this is done, if there is any, calculate the cross over. What would your decision be at a WACC higher and lower than the cross over?

Purchase this Solution
Solution Summary

This solution is comprised of a detailed explanation to answer what would your decision be at a WACC higher and lower than the cross over.

Solution Preview

You have two projects. You must calculate the NPV, IRR, and payback for both. These projects may be made up and very simplified but ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • Project and risk

    63661 Finance If the risk of a project substantially increased for a company, how would this increase affect each capital budgeting method (payback, discounted payback, NPV, IRR, PI, and MIRR) for that company?

  • Finance: Net present value,payback and IRR

    The solution deals with issues in finance: Internal rate of return, Net present value and payback period calculations.

  • Payback, NPV, IRR

    531866 Payback, NPV, an IRR Please help with the attached Corporate Finance Question regarding Payback, NPV, and IRR. I am looking for the calculations and work shown (any formulas) on how the answer was obtained.

  • Accounting: Capital budgeting and Decision Making

    ) IRR 2.01% Profitability index 0.72 Payback period 9 Years, 6 Months d) Determine the scenario analysis for NPV and IRR?

  • NPV, Payback Period and IRR

    154872 NPV, Payback Period and IRR I need help calculating Net present value, IRR and the payback period: You are the finance manager for Smith & Comapny and you must decide among three projects. The CFO set the required rate of return at 12%. ?

  • Finance:Net present value,payback etc.

    274787 Finance: MPV, IRR, MIRR, Payback Period, Discounted Payback Project K costs $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its WACC is 12%. a) What's the project's NPV? b) What's the project's IRR?

  • Three Capital Budgeting Techniques

    Payback does not consider the length of the economic life of a project - a project with a lesser payback period is not necessarily the most superior. Hence, managers should use payback together with NPV and IRR in decision making.

  • NPV, IRR and payback period

    This explains the steps to compute NPV, IRR and payback period. The solution is provided in Excel.

  • Project Acceptance Citeria

    The following three Capital Budgeting decision rules will be presented: - Payback Period - Net Present Value (NPV) - Internal Rate of Return (IRR) Payback period It is the period in which initial investments are recovered.

View More Related Solutions