
Basic concepts of NPV, IRR and Payback period
(B) Timing and scale problems.
(C) The discount rate and timing problems.
(D) Scale and reversing flow problems.
Answer (B) Timing and scale problems.
There are 10 MCQ/short answer type problems.

NPV Method and Cash Flow Estimation
255847 NPV Method and Cash Flow Estimation Please help answer the following problems.
1. The Payback period and the IRR methods are inferior to the NPV method, but firms still use these methods. Provide a rationale for this inconsistency.

Problem with valuing mutually exclusive projects using DCF
Existence of mutually exclusive projects can cause problems in the implementation of the discounted cash flow capitalbudgeting criteria. This is because if the capital is constrained, one may not pick the biggest NPV project.

Net present value and profitability index
Explain which investment I would like to consider and why. Problems: Calculate the net present value and profitability index of an uneven cash flow. There is a 10% return on investment. Explain which investment I would like to consider and why.

Capital Budgeting  Payback, NPV, PI, IRR
Amount of cash to be recovered at the end of year 3 = 2500
Cash flow in year 4 = 3500
Therefore payback period= 3 + 2500 / 3500 = 3.71 years
Problems with the Payback Period
?

Determinig Net Present Value (NPV) of various Proposals
There are 4 problems related to capital budgeting techniques. Solutions to these problems explain the methodology to analyze investment proposals based upon NPV method.

Adjusting cash flow for inflation
Thus the numerator (cash flow) in the NPV calculations is unadjusted for inflation while the discount rate in the denominator of the NPV calculation is adjusted for inflation.
The cash flows and discount rates are not unrelated to each other.

Capital Budgeting and Constant Growth Stock
110045 Finance Problems: NPV of risky and less than risky projects, Capital Budgeting, Constant Growth Stock
1 Risk Adjusted NPV:
The Bingo manufacturing corp.

Finance questions
319296 Finance: WACC, Payback, NPV, IRR, net income, net cash flow Chapter 8
Problems A 1
(Calculating the WACC) The required return on debt is 8%, the required return on equity is 14%, and the marginal tax rate is 40%.

Finance:Cost of capital, Capital budgeting and Bonds.
1.64 682.0 671.4
3 1,300 27% 28% 2.05 2.10 634.6 619.9
NPV 25.31 (A) 5.60 (B)
IRR 27.82% =27%+(((A/AB))*(28% 27%)
Cash flow Discount rate Discount factor Discounted cash flow
Year Aron ;+NPV ;NPV ;+NPV ;NPV ;+NPV ;NPV
0