Question
Create an 8- to 12-slide PowerPoint presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above.
Create an 8- to 12-slide PowerPoint presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Do not enter information in presenter notes (Powerpoint). Complete the following in your presentation: Analyze the results of the net present value calculations and the significance of these results, supported with examples. Determine which project should be adopted based on the net present value approach and provide a rationale for your decision. Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples. Determine which project should be adopted based on the internal rate of return approach and provide a rationale for your decision. Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected. Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.
Project A | ||||||
Discount Rate | 8% | |||||
Year 0 | -400,000 | |||||
Year 1 | $126,000.00 | 116,666.67 | ||||
Year 2 | $126,000.00 | 108,024.69 | ||||
Year 3 | $126,000.00 | 100,022.86 | NPV | IRR | ||
Year 4 | $126,000.00 | 30,882.35 | $16,044.43 | 0.099310 | ||
Project B | ||||||
Discount Rate | 8% | |||||
Year 0 | -160000 | |||||
Year 1 | 52800 | 48,888.89 | ||||
Year 2 | 52800 | 45,267.49 | ||||
Year 3 | 52800 | 41,914.34 | NVP | IRR | ||
Year 4 | 52800 | 38,809.58 | $13,778.05 | 0.121104 |
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