Question
no need for explanation just answers no copy-paste 1. This financial method determines the rate of return you can expect to earn on the project
no need for explanation just answers no copy-paste
1. This financial method determines the rate of return you can expect to earn on the project by calculating the rate needed for the present value of the expected cash inflows to equal the original investment?
A. Payback period
B. Discounted cash flows
C. IRR
D. ROI
2. T/F. The discounted cash flow technique determines the amount of time it takes for the project to recover its initial investment.
3. Projects with the _____________ IRR value should be chosen when size and scope are similar.
4. T/F. The ideal way for an organization to choose among competing projects and determine which should go forward is by using both financial methods and scoring models.
5. This method of project selection examines the profitability of the project, the marketability of the product of the project, alternative solutions to the proposed project and more. _____________ _____________.
Lab Exercise - Worth 4 Marks( short explanation)
1. Calculate the payback period for a project with an initial investment of $575,000; expected inflows of $25,000 per quarter for the first two years and $75,000 per quarter thereafter.
2. Your selection committee is deciding between two projects that are similar in size and scope. Project A has an IRR of 6 percent. Project B has an IRR of 5 percent. Which project should you recommend to the project committee and why?( no longer than 2 paragraph)
3. Describe cost-benefit analysis. ( no longer than 4 sentence)
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