Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help me please. Cite relevant sources with exact quote sto supoirt the answers. My professor is very strict, so am I aha Question 3 You

Help me please. Cite relevant sources with exact quote sto supoirt the answers. My professor is very strict, so am I aha

Question 3

You are a financial analyst for the Waffle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects A and B.Each project has a cost of $50,000, and the cost of capital for each is 10%.

The projects' expected net cash flows are as follows:

Expected Net Cash Flows

Year

Project A

Project B

0

($50,000)

($50,000)

1

25,000

15,000

2

20,000

15,000

3

10,000

15,000

4

5,000

15,000

5

5,000

15,000

  1. Calculate each project's payback period, net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and profitability index (PI).
  2. Which project will you select if your decision was based solely on the project's payback period?
  3. Which project or projects should be accepted if they are independent?
  4. Which project should be accepted if they are mutually exclusive?
  5. d. How might a change in the cost of capital produce a conflict between the NPV and IRR rankings of these two projects? Would this conflict exist if r were 6%? (Hint: Plot the NPV profiles.)

Question 4

Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for its factory. Because both machines perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered machine will cost more, but it will be less expensive to operate; it will cost $102,000, whereas the coal-powered machine will cost $69,500. The cost of capital that applies to both investments is 10%. The life for both types of machines is estimated to be 6 years, during which time the net cash flows for the electric-powered machine will be $26,150 per year, and those for the coal-powered machine will be $20,000 per year. Annual net cash flows include depreciation expenses.

  1. Calculate the NPV and IRR for each type of machine, and decide which to recommend

Question 5

Reading: Management of Information Security

o Chapter 1: Introduction to the Management of Information Security

o Chapter 2: Compliance: Law and Ethics

Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the

week/course and lecture concepts to one of the following scenarios:

As applied to your current professional career

As applied to enhancing, improving, or advancing your current professional career

As applied to a management, leadership, or any decision-making position

As applied to a current or future entrepreneurial endeavor

OR

Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the

week/course and lecture concepts to an organization that exhibits and demonstrates these concepts.

You should develop a summary of the organization's strategy and how they use these concepts to

compete.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law Express Human Rights

Authors: Claire De Than

5th Edition

1292210214, 978-1292210216

More Books

Students also viewed these Law questions

Question

Explain how to dispute irrational beliefs. Critical T hinking

Answered: 1 week ago