Purchase Solution

IRR calculations and NPV

Not what you're looking for?

Ask Custom Question

Make a spreadsheet document that contains the IRR calculations.

Clearly label each diagram to identify the investment name and type of asset
Show the original equation you are using
Clearly identify a value for each variable in the equation

Then, in a Microsoft Word document, prepare a summary report (300 words or less) that includes the following:

The NPVs of the four potential investments, ranked from most profitable to least profitable. I have the NPV's done ...please see excel spreadsheet.

The IRRs of the four potential investments, ranked from most profitable to least profitable
Your recommendation for the single most profitable investment and a justification of that choice

Attachments
Purchase this Solution

Solution Summary

IRR calculations and NPV are examined.

Solution Preview

BLUE MESA SUMMARY REPORT

The four projects Sagebrush, Longhorn, Big Crick and Dusty Basin are ranked based on NPV as below:
Rank 1: Big Crick-NPV=$125 million
Rank2: Longhorn-NPV=$51.88 million
Rank3: Sagebrush - NPV=$26.63 million
Rank 4: Dusty Basin - NPV=$20.34 million
The higher the value of the NPV the better the project is.

The ranking of the four projects based on IRR is as below:
Rank 1: Longhorn - IRR=22.15%
Rank2: Big Crick ...

Purchase this Solution


Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Operations Management

This quiz tests a student's knowledge about Operations Management