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A small aviation school is evaluating the merits of two independent projects - a full - motion flight simulator, and an instrument device offering state
A small aviation school is evaluating the merits of two independent projects a fullmotion flight simulator, and an instrument device offering stateoftheart nighttime flight guidance. Both projects are expected to have year life cycles. The flight simulator has an initial cost of $ and it is expected to generate net revenues of $ per year for each of the next years. The instrument device costs $ today, and it has expected net revenues for the next years of $ per year. Within its financial evaluations, the aviation school uses a discount rate of for all projects. Question Calculate the Payback Period for the flight simulator. Question options: years years years years None of the above. Question Calculate the Payback Period for the instrument device. Question options: years years years years None of the above. Question Calculate the Discounted Payback Period for the flight simulator. Question options: years years years years None of the above. Question Calculate the Discounted Payback Period for the nighttime instrument device. Question options: years years years years Beyond years No Payback Question Calculate the NPV for the flight simulator project. Question options: $ $ $ $ None of the above. Question Calculate the NPV for the nighttime instrument project. Question options: $ $ $ $ Question Based upon the NPV results, which projects should be accepted for investment? Question options: The flight simulator project should be accepted. The nighttime instrument device should be accepted. Both projects should be accepted. Neither project should be accepted. Question Calculate the IRR for the flight simulator project. Question options: None of the above. Question Calculate the IRR for the nighttime instrument project. Question options: None of the above. Question When evaluating a project using the Internal Rate of Return IRR method, what is the standard decisionmaking rule? Question options: Accept any project with a positive IRR Accept any project with an IRR that is greater than its cost of capital Accept any project with an IRR that is less than its expected life Accept any project with an IRR greater than
A small aviation school is evaluating the merits of two independent projects a fullmotion flight simulator, and an instrument device offering stateoftheart nighttime flight guidance. Both projects are expected to have year life cycles. The flight simulator has an initial cost of $ and it is expected to generate net revenues of $ per year for each of the next years. The instrument device costs $ today, and it has expected net revenues for the next years of $ per year. Within its financial evaluations, the aviation school uses a discount rate of for all projects.
Question
Calculate the Payback Period for the flight simulator.
Question options:
years
years
years
years
None of the above.
Question
Calculate the Payback Period for the instrument device.
Question options:
years
years
years
years
None of the above.
Question
Calculate the Discounted Payback Period for the flight simulator.
Question options:
years
years
years
years
None of the above.
Question
Calculate the Discounted Payback Period for the nighttime instrument device.
Question options:
years
years
years
years
Beyond years No Payback
Question
Calculate the NPV for the flight simulator project.
Question options:
$
$
$
$
None of the above.
Question
Calculate the NPV for the nighttime instrument project.
Question options:
$
$
$
$
Question
Based upon the NPV results, which projects should be accepted for investment?
Question options:
The flight simulator project should be accepted.
The nighttime instrument device should be accepted.
Both projects should be accepted.
Neither project should be accepted.
Question
Calculate the IRR for the flight simulator project.
Question options:
None of the above.
Question
Calculate the IRR for the nighttime instrument project.
Question options:
None of the above.
Question
When evaluating a project using the Internal Rate of Return IRR method, what is the standard decisionmaking rule?
Question options:
Accept any project with a positive IRR
Accept any project with an IRR that is greater than its cost of capital
Accept any project with an IRR that is less than its expected life
Accept any project with an IRR greater than
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