Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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)

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

Step: 3

blur-text-image

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

Management Audit Maximizing Your Companys Efficiency And Effectiveness

Authors: John Nolan

1st Edition

0801975581, 978-0801975585

More Books

Students also viewed these Accounting questions

Question

=+b. What is the probability that Vons brand is not purchased?

Answered: 1 week ago

Question

What are the basic financial decisions ?

Answered: 1 week ago

Question

What is meant by 'Wealth Maximization ' ?

Answered: 1 week ago