10:51 Back Day Pro's Dilemma Founded in 1915, Day Pro has regularly managed to make a profits from Currently, company management plans to develop a packaging machine for electronic products. The product development department come with two different attemates. The first mode APOCH low initial cost. The second model ARAGON has higher capacity, although it requires investment. The teams developing both products presented documents to support cash flow forecasts and these in the presentation Now management has to decide on the production of one In order to solve the problem, Aynur Fardar, assistant treasurer who had just completed his master's degree in Business Administration was appointed to analyze the cash flows given and reports the board of director. Aynut aware of the difficulty of the work because he knows the of the board do not have an opinion on financial issues. The board has ended we percentages as data in the past. They've showed the refund perod. However, Aynur comidest the NSD method is the one with the last roughness and if used correctly, is the right for the carroan After receiving the cash flows of both projects, Aynur realizes that his job is more than the thinks Various capital budgeting techniques give inconsistent results when applied to cash flows. The project has a higher and has a longer repayment period and a smaltate of Aynur begins to think of a way of explaining how the internal rate of efficiency and repayment period sometimes lead the board to incorrect results while watching its head 2010 2011 2012 2013 ARAGON Net income 150000 300000 450000 Depreciation 200000 200000 200000 200000 200000 Net cash flow 1000000 350000 400000 SC0000 650000 2009 2011 2012 2013 2016 APOCH Net income Depreciation Net cash flow 440000 160000 600000 240000 160000 400000 140000 160000 300000 40000 160000 200000 800000 Requested: 1. Calculate payback period. How can Aytur gue that relying on the payback periodista appropriate decision-making tool? 2. Calculate the discounted payback period uning 10% discount rate. Can de the board to use the discounted payback period as a criterion for decision-making Calculate the IRR of both projects. How can Aynur explain to the board that I could sometimes be misleading 4. Calotate the net present value of both projects How can your explain to the band NPV is the appropriate method Home Courses Calendar 10:51 Back 2013 2014 sometimes lead the board to incorrect results while scratching its head 2005 2010 2011 2012 ARAGON Net Income Depreciation 2000 200000 Net cash flow 1000ODO 50000 SODO 250000 200000 690000 700000 2001 2010 2011 APOCH Net Income Depreciation Net cash flow 440000 16000 600000 340000 160000 140000 160000 40000 168000 200000 10000 IODO 200000 800000 Requested 1. Calculate payback period. How can Aynur argue that relying on the back periodista appropriate decision making tool? 2. Calculate the discounted payback period using a los discount rate. Can Adsette board to use the discounted paytack period as criterion for deosong 2. Calculate the art of both projects. How can your explain to the board shut could sometimes be misleading! 4 Calculate the net present value of both project. How can Aynur explain to the board NPV is the appropriate method? How can Aynur explain that modified as a more realistic method when it is necessary to make decisions for simultaneous projects No calculation is necessary 6. Calculate the profitability index. Can this solve Aynur's problem? 7. Looking at both cash flows, the ARAGON team's estimates show that its more pessimistic than the APOCH Sean What the could have on the X. In the documents prepared by both project teams, ARAGON technology intys serious R&D, while APOCH technology is almost ready. What effect does this are you analysis? Would it lead to a change in your calculation) Wauid lead to change in your decision making analysis? Home Courses Calendar Day Pro's Dilemma Founded in 1995, Day Pro has regularly managed to make high profits from its investments. Currently, company management plans to develop a packaging machine for electronic products. The product development department came with two different alternatives. The first model APOCH has a low initial cost. The second model ARAGON has higher capacity, although it requires higher initial investment. The teams developing both products presented documents to support cash flow forecasts and thesis in the presentation. Now management has to decide on the production of one of the two machines. In order to solve the problem, Aynur Fardan, assistant treasurer who had just completed his master's degree in Business Administration, was appointed to analyze the cash flows given and report to the board of directors. Aynur is aware of the difficulty of the work because he knows that the members of the board do not have an opinion on financial issues. The board has tended to use return percentages as data in the past. They've also used the refund period. However, Aynur considers that the NSD method is the one with the least roughness and, if used correctly, is the right solution for the company. After receiving the cash flows of both projects, Aynur realizes that his job is more difficult than he thinks. Various capital budgeting techniques give inconsistent results when applied to cash flows. The project has a higher NSD and has a longer repayment period and a lower Internal Rate of Return Aynur begins to think of a way of explaining how the internal rate of efficiency and repayment period sometimes lead the board to incorrect results while scratching its head. 2009 2010 2011 2012 2013 2014 V&IsReadOnly=True&Learning ObjectId=219595464&Learning Object Sleunes ledu ile Dudlu LU MICUITECTEUILS wille Slidl ILS Edu. 2009 2010 2011 2012 2013 2014 ARAGON Net income Depreciation Net cash flow 150000 200000 - 1000000 350000 200000 200000 400000 300000 200000 500000 450000 200000 650000 500000 200000 700000 2009 2010 2011 2012 2013 2014 APOCH Net income Depreciation Net cash flow 440000 160000 600000 240000 160000 400000 140000 160000 300000 40000 160000 200000 40000 160000 200000 -800000 Requested: 1. Calculate payback period. How can Aynur argue that relying on the payback period is not an appropriate decision-making tool? 2. Calculate the discounted payback period using a 10% discount rate. Can Aynur advise the board to use the discounted payback period as a criterion for decision-making? 3. Calculate the IRR of both projects. How can Aynur explain to the board that IRR could sometimes be misleading? 4. Calculate the net present value of both projects. How can Aynur explain to the board that NPV is the appropriate method? 5. How can Aynur explain that modified IRR is a more realistic method when it is necessary to make decisions for simultaneous projects? No calculation is necessary. 6. Calculate the profitability index. Can this solve Aynur's problem? 7. Looking at both cash flows, the ARAGON team's estimates show that it is a bit more pessimistic than the APOCH team. What effect could this have on the analysis? 8. In the documents prepared by both project teams, ARAGON technology initially requires a serious R&D, while APOCH technology is almost ready. What effect does this have on your analysis? Would it lead to a change in your calculations? Would it lead to a change in your decision making analysis? Day Pro's Dilemma Founded in 1995, Day Pro has regularly managed to make high profits from its investments. Currently, company management plans to develop a packaging machine for electronic products. The product development department came with two different alternatives. The first model APOCH has a low initial cost. The second model ARAGON has higher capacity, although it requires higher initial investment. The teams developing both products presented documents to support cash flow forecasts and thesis in the presentation. Now management has to decide on the production of one of the two machines. In order to solve the problem, Aynur Fardan, assistant treasurer who had just completed his master's degree in Business Administration, was appointed to analyze the cash flows given and report to the board of directors. Aynur is aware of the difficulty of the work because he knows that the members of the board do not have an opinion on financial issues. The board has tended to use return percentages as data in the past. They've also used the refund period. However, Aynur considers that the NSD method is the one with the least roughness and, if used correctly, is the right solution for the company After receiving the cash flows of both projects, Aynur realizes that his job is more difficult than he thinks. Various capital budgeting techniques give inconsistent results when applied to cash flows. The project has a higher NSD and has a longer repayment period and a lower Internal Rate of Return Aynur begins to think of a way of explaining how the internal rate of efficiency and repayment period sometimes lead the board to incorrect results while scratching its head. 2009 2010 2011 2012 2013 2014 sometimes lead the board to incorrect results while scratching its head. 2009 2010 2011 2012 2013 2014 ARAGON Net income Depreciation Net cash flow 150000 200000 350000 200000 200000 400000 300000 200000 500000 450000 200000 650000 500000 200000 700000 -1000000 2009 2010 2011 2012 2013 2014 APOCH Net income Depreciation Net cash flow 440000 160000 600000 240000 160000 400000 140000 160000 300000 40000 160000 200000 -800000 40000 160000 200000 Requested: 1. Calculate payback period. How can Aynur argue that relying on the payback period is not an appropriate decision-making tool? 2. Calculate the discounted payback period using a 10% discount rate. Can Aynur advise the board to use the discounted payback period as a criterion for decision-making? 3. Calculate the IRR of both projects. How can Aynur explain to the board that IRR could sometimes be misleading? 4. Calculate the net present value of both projects. How can Aynur explain to the board that NPV is the appropriate method? 10:51 Back Day Pro's Dilemma Founded in 1915, Day Pro has regularly managed to make a profits from Currently, company management plans to develop a packaging machine for electronic products. The product development department come with two different attemates. The first mode APOCH low initial cost. The second model ARAGON has higher capacity, although it requires investment. The teams developing both products presented documents to support cash flow forecasts and these in the presentation Now management has to decide on the production of one In order to solve the problem, Aynur Fardar, assistant treasurer who had just completed his master's degree in Business Administration was appointed to analyze the cash flows given and reports the board of director. Aynut aware of the difficulty of the work because he knows the of the board do not have an opinion on financial issues. The board has ended we percentages as data in the past. They've showed the refund perod. However, Aynur comidest the NSD method is the one with the last roughness and if used correctly, is the right for the carroan After receiving the cash flows of both projects, Aynur realizes that his job is more than the thinks Various capital budgeting techniques give inconsistent results when applied to cash flows. The project has a higher and has a longer repayment period and a smaltate of Aynur begins to think of a way of explaining how the internal rate of efficiency and repayment period sometimes lead the board to incorrect results while watching its head 2010 2011 2012 2013 ARAGON Net income 150000 300000 450000 Depreciation 200000 200000 200000 200000 200000 Net cash flow 1000000 350000 400000 SC0000 650000 2009 2011 2012 2013 2016 APOCH Net income Depreciation Net cash flow 440000 160000 600000 240000 160000 400000 140000 160000 300000 40000 160000 200000 800000 Requested: 1. Calculate payback period. How can Aytur gue that relying on the payback periodista appropriate decision-making tool? 2. Calculate the discounted payback period uning 10% discount rate. Can de the board to use the discounted payback period as a criterion for decision-making Calculate the IRR of both projects. How can Aynur explain to the board that I could sometimes be misleading 4. Calotate the net present value of both projects How can your explain to the band NPV is the appropriate method Home Courses Calendar 10:51 Back 2013 2014 sometimes lead the board to incorrect results while scratching its head 2005 2010 2011 2012 ARAGON Net Income Depreciation 2000 200000 Net cash flow 1000ODO 50000 SODO 250000 200000 690000 700000 2001 2010 2011 APOCH Net Income Depreciation Net cash flow 440000 16000 600000 340000 160000 140000 160000 40000 168000 200000 10000 IODO 200000 800000 Requested 1. Calculate payback period. How can Aynur argue that relying on the back periodista appropriate decision making tool? 2. Calculate the discounted payback period using a los discount rate. Can Adsette board to use the discounted paytack period as criterion for deosong 2. Calculate the art of both projects. How can your explain to the board shut could sometimes be misleading! 4 Calculate the net present value of both project. How can Aynur explain to the board NPV is the appropriate method? How can Aynur explain that modified as a more realistic method when it is necessary to make decisions for simultaneous projects No calculation is necessary 6. Calculate the profitability index. Can this solve Aynur's problem? 7. Looking at both cash flows, the ARAGON team's estimates show that its more pessimistic than the APOCH Sean What the could have on the X. In the documents prepared by both project teams, ARAGON technology intys serious R&D, while APOCH technology is almost ready. What effect does this are you analysis? Would it lead to a change in your calculation) Wauid lead to change in your decision making analysis? Home Courses Calendar Day Pro's Dilemma Founded in 1995, Day Pro has regularly managed to make high profits from its investments. Currently, company management plans to develop a packaging machine for electronic products. The product development department came with two different alternatives. The first model APOCH has a low initial cost. The second model ARAGON has higher capacity, although it requires higher initial investment. The teams developing both products presented documents to support cash flow forecasts and thesis in the presentation. Now management has to decide on the production of one of the two machines. In order to solve the problem, Aynur Fardan, assistant treasurer who had just completed his master's degree in Business Administration, was appointed to analyze the cash flows given and report to the board of directors. Aynur is aware of the difficulty of the work because he knows that the members of the board do not have an opinion on financial issues. The board has tended to use return percentages as data in the past. They've also used the refund period. However, Aynur considers that the NSD method is the one with the least roughness and, if used correctly, is the right solution for the company. After receiving the cash flows of both projects, Aynur realizes that his job is more difficult than he thinks. Various capital budgeting techniques give inconsistent results when applied to cash flows. The project has a higher NSD and has a longer repayment period and a lower Internal Rate of Return Aynur begins to think of a way of explaining how the internal rate of efficiency and repayment period sometimes lead the board to incorrect results while scratching its head. 2009 2010 2011 2012 2013 2014 V&IsReadOnly=True&Learning ObjectId=219595464&Learning Object Sleunes ledu ile Dudlu LU MICUITECTEUILS wille Slidl ILS Edu. 2009 2010 2011 2012 2013 2014 ARAGON Net income Depreciation Net cash flow 150000 200000 - 1000000 350000 200000 200000 400000 300000 200000 500000 450000 200000 650000 500000 200000 700000 2009 2010 2011 2012 2013 2014 APOCH Net income Depreciation Net cash flow 440000 160000 600000 240000 160000 400000 140000 160000 300000 40000 160000 200000 40000 160000 200000 -800000 Requested: 1. Calculate payback period. How can Aynur argue that relying on the payback period is not an appropriate decision-making tool? 2. Calculate the discounted payback period using a 10% discount rate. Can Aynur advise the board to use the discounted payback period as a criterion for decision-making? 3. Calculate the IRR of both projects. How can Aynur explain to the board that IRR could sometimes be misleading? 4. Calculate the net present value of both projects. How can Aynur explain to the board that NPV is the appropriate method? 5. How can Aynur explain that modified IRR is a more realistic method when it is necessary to make decisions for simultaneous projects? No calculation is necessary. 6. Calculate the profitability index. Can this solve Aynur's problem? 7. Looking at both cash flows, the ARAGON team's estimates show that it is a bit more pessimistic than the APOCH team. What effect could this have on the analysis? 8. In the documents prepared by both project teams, ARAGON technology initially requires a serious R&D, while APOCH technology is almost ready. What effect does this have on your analysis? Would it lead to a change in your calculations? Would it lead to a change in your decision making analysis? Day Pro's Dilemma Founded in 1995, Day Pro has regularly managed to make high profits from its investments. Currently, company management plans to develop a packaging machine for electronic products. The product development department came with two different alternatives. The first model APOCH has a low initial cost. The second model ARAGON has higher capacity, although it requires higher initial investment. The teams developing both products presented documents to support cash flow forecasts and thesis in the presentation. Now management has to decide on the production of one of the two machines. In order to solve the problem, Aynur Fardan, assistant treasurer who had just completed his master's degree in Business Administration, was appointed to analyze the cash flows given and report to the board of directors. Aynur is aware of the difficulty of the work because he knows that the members of the board do not have an opinion on financial issues. The board has tended to use return percentages as data in the past. They've also used the refund period. However, Aynur considers that the NSD method is the one with the least roughness and, if used correctly, is the right solution for the company After receiving the cash flows of both projects, Aynur realizes that his job is more difficult than he thinks. Various capital budgeting techniques give inconsistent results when applied to cash flows. The project has a higher NSD and has a longer repayment period and a lower Internal Rate of Return Aynur begins to think of a way of explaining how the internal rate of efficiency and repayment period sometimes lead the board to incorrect results while scratching its head. 2009 2010 2011 2012 2013 2014 sometimes lead the board to incorrect results while scratching its head. 2009 2010 2011 2012 2013 2014 ARAGON Net income Depreciation Net cash flow 150000 200000 350000 200000 200000 400000 300000 200000 500000 450000 200000 650000 500000 200000 700000 -1000000 2009 2010 2011 2012 2013 2014 APOCH Net income Depreciation Net cash flow 440000 160000 600000 240000 160000 400000 140000 160000 300000 40000 160000 200000 -800000 40000 160000 200000 Requested: 1. Calculate payback period. How can Aynur argue that relying on the payback period is not an appropriate decision-making tool? 2. Calculate the discounted payback period using a 10% discount rate. Can Aynur advise the board to use the discounted payback period as a criterion for decision-making? 3. Calculate the IRR of both projects. How can Aynur explain to the board that IRR could sometimes be misleading? 4. Calculate the net present value of both projects. How can Aynur explain to the board that NPV is the appropriate method