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Capital Corporation

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The following is a list of four projects that Capital Corporation must choose from for the coming year:
Project Project Price Annual Net Inflows
A 700,000 118,861
B 670,000 109,039
C 184,000 32,549
D 273,000 48,305
1. Given a uniform rate of interest of 9% and a uniform life of the projects of 10 years each, calculate the NPVs of each Project (To calculate NPV, calculate the Present Value of a 10 year annuity, and subtract the project price. The formula for the present value factor of an annuity is given below where r is the rate of interest and n is the number of years. To get the present value of the stream of annuities multiply the PVF by the amount you get each year.)

2. Why should we choose either Projects A, C, D or Projects A, B, D?

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The following is a list of four projects that Capital Corporation must choose from for the coming year:
Project Project Price Annual Net Inflows
A 700,000 118,861
B 670,000 109,039
C 184,000 32,549
D 273,000 48,305
1. Given a uniform rate of interest of 9% and a uniform life of the projects of 10 years each, calculate the NPVs of each Project (To calculate NPV, calculate the Present Value of a 10 year ...

Solution Summary

This solution is comprised of a detailed explanation to determine the NPV for 4 projects and answer why should we choose
either Projects A, C, D or Projects A, B, D.

$2.19
See Also This Related BrainMass Solution

Case Study on Capital One

Please read the attached case and answer to the following questions with in depth information.
I got some help on fist answering to the questions and I attached it as well. But it is too general and not specific from the case. Please make further answers and PLEASE GET ANSWERS ONLY FROM THE CASE ATTACHED.

1. Evaluate Fairbanks' approach to entrepreneurship in the credit card industry.

2. Identify Capital One's key functional strategies, company policies, and organizational structure and how they support/fail to support the company's overall strategy and objectives.

3. Write a one-sentence statement that summarizes Capital One's strategy.

4. Evaluate Capital One's strategy. Is is internally consistent? What are Capital One's key competitive advantages?

5. Was the company's strategy well-suited to the competitive environment that it faced? Why or why not?

6. Evaluate the America One and Summit Acceptance Corporation initiatives. Trying not to use hindsight, would you have supported either? Both? Why? Why not?

7. What strategic issues does Capital One face at the time of the case?

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