1. Cash Flow Project 1 Cash Flow Project

1 $7,000 $7,500

2. $1,500 $2,500

3 $6,000 $5,000

4 $2,000 $4,000

The cost of both projects is $15,000

Calculate the pay back for both projects

Calculate the NPV for both projects using the rate of return of 12%

Calculate the IRR for both projects. (PLEASE USE THE IRR CALCULATOR IN YAHOO

OR GOOGLE TO COMPUTE IRR) which project would you take? And why?

2. What is a financial manager? What is the biggest challenge of a financial manager?

3. What are the advantages and disadvantages of a partnership? What are the advantages and disadvantages of a corporation?

4. What is leverage? What are the good points of leverages? What are the bad points of leverages?

5. Your financial ratios are not similar to other companies in your industry. What can be going on?