Question
Week 2 Apply Signature Assignment: Net present Value and Internal Rate of Return Assignment Content 1. Top of Form For this assignment, refer to the
Week 2 Apply Signature Assignment: Net present Value and Internal Rate of Return
Assignment Content
1.
Top of Form
For this assignment, refer to the scenario located in "Problems - Series A" section 10-19A of Ch. 10, "Planning for Capital Investments" of Fundamental Managerial Accounting Concepts. This scenario puts you at task as a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.
Read the scenario in the textbook and complete the activity below.
Use Excelshowing all work and formulasto compute the following:
oCompute the net present value of each project. Round your computations to 2 decimal points.
oCompute the approximate internal rate of return for each project. Round your rates to 6 decimal points
Create a PowerPoint presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:
oAnalyze the results of the net present value calculations and the significance of these results, supported with examples.
oDetermine which project should be adopted based on the net present value approach and provide rationale for your decision.
oAnalyze the results of the internal rate of return calculation and the significance of these results, supported with examples.
oDetermine which project should be adopted based on the internal rate of return approach and provide rationale for your decision.
oDetermine the preferred method in the given circumstances and provide reasoning and details to support the method selected.
oSynthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.
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