{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-09T20:29:09-04:00", "answer_date": "2024-06-09 20:29:09", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2543397", "url": "\/study-help\/questions\/galaxy-satellite-co-is-attempting-to-select-the-best-group-2543397", "question_creation_date_js": "2024-06-09T20:29:09-04:00", "question_creation_date": "Jun 09, 2024 08:29 PM", "meta_title": "[Solved] Galaxy Satellite Co. is attempting to sel | SolutionInn", "meta_description": "Answer of - Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed cap | SolutionInn", "meta_keywords": "galaxy,satellite,attempting,select,group,independent,projects,competing,firm,s,fixed,capital", "question_title_h1": "Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. Any unused portion", "question_title": "Galaxy Satellite Co. is attempting to select the best group of independent", "question_title_for_js_snippet": "Galaxy Satellite Co is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000 Any unused portion of this budget will earn less than its 20 percent cost of capital A summary of key data about the proposed projects follows Project PV of Inflows Initial Investment IRR A $3,050,000 $3,000,000 21 B $9,320,000 $9,000,000 25 C $1,060,000 $1,000,000 24 D $7,350,000 $7,000,000 23 Use the NPV approach to select the best group of projects (Note that just the PV of inflows is given, you must subtract the initial investment to find the NPV ) Use the IRR approach to select the best group of projects (Note that the discount rate or the cost of capital is 20 ) Whichprojectsshouldthefirmimplementbasedonyouranalysisofbothtechniquesandgiventhecapitalrationingamount Writeanemailtoyourboss,AndyFast,theCFO,explainingyourrationaleprovingthechoicesbasedontheconsiderationsofshareholdervalueandthemaximuminvestmentbudget Keepinmindthatyouarelessconcernedwithusingthewholebudgetthanwithmaximizingthetotalreturnto Galaxysatellite How would I Show in a email to Andy Fast, The CFO explaining rational of chooses needing to make to shareholders and maximum investment budget ", "question_description": "

Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows.<\/p>

Project<\/p> <\/td>

PV of Inflows<\/p> <\/td>

Initial Investment<\/p> <\/td>

<\/p> <\/td>

IRR<\/p> <\/td> <\/tr>

A<\/p> <\/td>

$3,050,000<\/p> <\/td>

$3,000,000<\/p> <\/td>

<\/p> <\/td>

21%<\/p> <\/td> <\/tr>

B<\/p> <\/td>

$9,320,000<\/p> <\/td>

$9,000,000<\/p> <\/td>

<\/p> <\/td>

25%<\/p> <\/td> <\/tr>

C<\/p> <\/td>

$1,060,000<\/p> <\/td>

$1,000,000<\/p> <\/td>

<\/p> <\/td>

24%<\/p> <\/td> <\/tr>

D<\/p> <\/td>

$7,350,000<\/p> <\/td>

$7,000,000<\/p> <\/td>

<\/p> <\/td>

23%<\/p> <\/td> <\/tr> <\/tbody><\/table>

  1. Use the NPV approach to select the best group of projects. (Note that just the PV of inflows is given, you must subtract the initial investment to find the NPV.)<\/li>
  2. Use the IRR approach to select the best group of projects. (Note that the discount rate or the cost of capital is 20%.)<\/li>
  3. Whichprojectsshouldthefirmimplementbasedonyouranalysisofbothtechniquesandgiventhecapitalrationingamount?<\/li>
  4. Writeanemailtoyourboss,AndyFast,theCFO,explainingyourrationaleprovingthechoicesbasedontheconsiderationsofshareholdervalueandthemaximuminvestmentbudget.KeepinmindthatyouarelessconcernedwithusingthewholebudgetthanwithmaximizingthetotalreturntoGalaxysatellite.<\/span> <\/li> <\/ol>

    <\/p>

    How would I Show in a email to Andy Fast, The CFO explaining rational of chooses needing to make to shareholders and maximum investment budget.<\/span><\/p>", "transcribed_text": "", "related_book": { "title": "The Changing Geography Of Banking And Finance", "isbn": "1441947205, 978-1441947208", "edition": "1st Edition", "authors": "Pietro Alessandrini ,Michele Fratianni ,Alberto Zazzaro", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/03\/66050c9f889e3_94366050c9f62f22.jpg", "uri": "\/textbooks\/the-changing-geography-of-banking-and-finance-1st-edition-978-1441947208-260622", "see_more_uri": "" }, "free_related_book": { "isbn": "1946381209", "uri": "\/textbooks\/the-study-chronicles-tales-of-ixia-and-sitia-978-1946381200-132537", "name": "The Study Chronicles Tales Of Ixia And Sitia", "edition": "" }, "question_posted": "2024-06-09 20:29:09", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/120-y-potential-difference-is-applied-to-space-heater-whose", "description": "A 120 Y potential difference is applied to a space heater whose resistance is 14 when hot. 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