Question
PLEASE COMPLETE ALL PARTS, THANK YOU. PART 3 OF THE QUESTION PART 2 IS THIS LINK ( https://www.chegg.com/homework-help/questions-and-answers/please-complete-parts-thank--part-2-question-part-1-link-https-wwwcheggcom-homework-help-q-q63143324?trackid=mdPfILG6 ) PART 1 IS THIS LINK (
PLEASE COMPLETE ALL PARTS, THANK YOU.
PART 3 OF THE QUESTION
PART 2 IS THIS LINK ( https://www.chegg.com/homework-help/questions-and-answers/please-complete-parts-thank--part-2-question-part-1-link-https-wwwcheggcom-homework-help-q-q63143324?trackid=mdPfILG6 )
PART 1 IS THIS LINK ( https://www.chegg.com/homework-help/questions-and-answers/please-complete-parts-thank--part-1-question-part-2-link-https-wwwcheggcom-homework-help-q-q63142825?trackid=8tRzexN2 )
ANUAL SALES GROWTH RATE = 4.90%
| Q#1 | Would you accept the project based on NPV, IRR? | |||||
| Would you accept the project based on Payback rule if project cut-off | ||||||
| period is 3 years? | ||||||
| Q#2 SENSITIVITY and SCENARIO ANALYIS. | ||||||
| Capital Budgeting (Investment ) Decisions | ||||||
| (a) | Estimate NPV, IRR and Payback Period of the project if Marginal | |||||
| Corporate Tax is reduced to 20%. Would you accept or reject the project? | ||||||
| Assume Straight-Line Depreciation. | ||||||
| (b) | Estimate NPV, IRR and Payback Period of the project if Equipment is fully | |||||
| depreciated in first year and tax rate is reduced to 20%. Would you | ||||||
| accept or reject the project? | ||||||
| ( c) | As a CFO of the firm, which of the above two scenario (a) or (b) | |||||
| would you choose? Why? | ||||||
| Q#3 How would you explain to your CEO what NPV means? | ||||||
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
