Describe the internal rate of return IRR as a method for deciding the desirability of a capital budgeting project

Solved Capital Budgeting Techniques Assignments

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–4.

Explain the net present value (NPV) method for determining a capital budgeting project’s desirability. What is the acceptance benchmark when using NPV?
Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic?
Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark when using IRR?
Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRR’s strengths and weaknesses?
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
If you choose to solve the problems algebraically, be sure to show your computations.
If you use a financial calculator, show your input values.
If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Based on the cash flows shown in the chart below, compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Huron
Time                 0             1           2           3           4
Cash Flow $12,000 $2,360 $4,390 $1,520 $3,300

Based on the cash flows shown in the chart below, compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Erie
Time              0             1             2            3          4
Cash Flow $12,000 $2,360 $4,390 $1,520 $980

5
$1,250

Explain the net present value  NPV method for determining a capital budgeting projects desirability

Solved Capital Budgeting Techniques Assignments

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–4.

Explain the net present value (NPV) method for determining a capital budgeting project’s desirability. What is the acceptance benchmark when using NPV?
Explain the payback period statistic. What is the acceptance benchmark when using the payback period statistic?
Describe the internal rate of return (IRR) as a method for deciding the desirability of a capital budgeting project. What is the acceptance benchmark when using IRR?
Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRR’s strengths and weaknesses?
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
If you choose to solve the problems algebraically, be sure to show your computations.
If you use a financial calculator, show your input values.
If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Based on the cash flows shown in the chart below, compute the NPV for Project Huron. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Huron
Time                 0             1           2           3           4
Cash Flow $12,000 $2,360 $4,390 $1,520 $3,300

Based on the cash flows shown in the chart below, compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Erie
Time              0             1             2            3          4
Cash Flow $12,000 $2,360 $4,390 $1,520 $980

5
$1,250

What is the annual rate of return for an $8000 investment if in five years it grows to $12500

Solved Time Value of Money Assignments Single Cash Flow

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–3.

Explain the concept of cash flow in corporate finance.
Explain how present value and future values are related.
Explain how present values are affected by changes in interest rates.
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
If you choose to solve the problems algebraically, be sure to show your computations.
If you use a financial calculator, show your input values.
If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Unless otherwise directed, assume annual compounding periods in the computational problems.

If you deposited $250 in your savings account today, and the bank pays 4 percent interest per year, how much would you have in your savings account after 9 years?
Recalculate the account balance using a 6 percent interest rate and a 7 percent interest rate.
A $450 deposit earns 6 percent interest in the first year, 3 percent interest in the second year, and 7 percent interest in the third year. What is the future value at the end of the third year?
What is the annual rate of return for an $8,000 investment if in five years it grows to $12,500?
Assuming the growth occurred in six years and then eight years, recalculate the rate of return for these two scenarios.

If you deposited $250 in your savings account today and the bank pays 4 percent interest per year how much would you have in your savings account after 9 years

Solved Time Value of Money Assignments Single Cash Flow

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–3.

Explain the concept of cash flow in corporate finance.
Explain how present value and future values are related.
Explain how present values are affected by changes in interest rates.
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
If you choose to solve the problems algebraically, be sure to show your computations.
If you use a financial calculator, show your input values.
If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

Unless otherwise directed, assume annual compounding periods in the computational problems.

If you deposited $250 in your savings account today, and the bank pays 4 percent interest per year, how much would you have in your savings account after 9 years?
Recalculate the account balance using a 6 percent interest rate and a 7 percent interest rate.
A $450 deposit earns 6 percent interest in the first year, 3 percent interest in the second year, and 7 percent interest in the third year. What is the future value at the end of the third year?
What is the annual rate of return for an $8,000 investment if in five years it grows to $12,500?
Assuming the growth occurred in six years and then eight years, recalculate the rate of return for these two scenarios.

What is the present value of a series of $1150 payments made every year for 14 years when the discount rate is 9 percent

Time Value of Money Assignments Annuity Cash Flow Scoring Guide

Respond to the questions and complete the problems.

Questions

In a Word document, respond to the following. Number your responses 1–4.

Explain whether you would you rather have a savings account that paid interest compounded on a monthly basis or compounded on an annual basis? Why?
Describe what an amortization schedule is and its uses. Explain the purpose of an amortization schedule.
Interest on a home mortgage is tax deductible. Explain why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.
Explain the difference between an ordinary annuity and an annuity due.
Use references to support your responses as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.

Problems

In either a Word document or Excel spreadsheet, complete the following problems.

You may solve the problems algebraically, or you may use a financial calculator or an Excel spreadsheet.
If you choose to solve the problems algebraically, be sure to show your computations.
If you use a financial calculator, show your input values.
If you use an Excel spreadsheet, show your input values and formulas.
In addition to your solution to each computational problem, you must show the supporting work leading to your solution to receive credit for your answer.

If interest rates are 8 percent, what is the future value of a $400 annuity payment over six years? Unless otherwise directed, assume annual compounding periods.
Recalculate the future value at 6 percent interest and 9 percent interest.
If interest rates are 5 percent, what is the present value of a $900 annuity payment over three years? Unless otherwise directed, assume annual compounding periods.
Recalculate the present value at 10 percent interest and 13 percent interest.
What is the present value of a series of $1150 payments made every year for 14 years when the discount rate is 9 percent?
Recalculate the present value using discount rate of 11 percent and 12 percent