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Project B is Not 14k it is 13000 sorry bmhomework-finalson.docx (Korumal Grnm) - Microsoft Word (Urn Etkin estirlemed Postalar Gzden Geir Grnm e Sayfa Dzeni
Project B is Not 14k it is 13000 sorry
bmhomework-finalson.docx (Korumal Grnm) - Microsoft Word (Urn Etkin estirlemed Postalar Gzden Geir Grnm e Sayfa Dzeni Bavurular Bu dosyann kayna bir Internet konumu; dosya gvenli olmayabilir. Daha fazla ayrnt iin tklatn. Dzenlemeyi etkinletir At most three students can group and do group assignment. Each group member is going to be evaluated separately. Name surname and student number of each group member must be written on the assignment paper. Assignments must be written with readable handwriting. All calculations must be explained in detail with at least three sentences. These explanations are going to be evaluated individually, and be effective on examination marks.Illegible writing is not going to be evaluated (I don't have to be read). The assignments must be uploaded until the deadline, otherwise I don't accept. Identical assignments are going to be determined and treated as copy. 1. Periodic net cash flows of A project and B project are presented below. Investment expenditures of A & B project are TL 8.000 and TL 14.000, respectively. Period (year) A Project 0 -8.000 1 2.000 2 2.200 3 2.400 4 6.600 5 2.000 B Project -13.000 4.000 4.000 4.000 5.000 2.000 The firm's cost of capital (discount rate) is 10% in evaluating the projects. a) Calculate payback period of A Project as year and month. Show all calculations in detail on the table or you can draw time line(12 points) b) Calculate Net Present Value (NPV) of A Project. Decide whether this project is accepted or not. Explain the reason in terms of NPV method(12 points) c) Calculate Profitability Index (PI) of B Project. Decide whether this project is accepted or not. Explain the reason in terms of PI method(12 points) d) Calculate discounted payback period of B Project. Show all calculations in detail on the table or you can draw time line(14 points)
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