Andrea Prosper, president of Pearl Manufacturing is trying to select the best alternative from four potential investemnts. Each investment involves an initial outlay of $110,000. Their cash flows follow:
Year Northeast Southeast Northwest Southwest
1 $ 20,000 $ 60,000 $ 30,000 $ –
2 25,000 35,000 $ 30,000 –
3 25,000 30,000 $ 30,000 45,000
4 45,000 – $ 30,000 65,000
5 55,000 – $ 30,000 85,000
Evaluate and rank each alternative based on a) payback period, b) net present value (use an 11% discount rate), and c) internal rate of return.
Be sure to show your work in an excel file!
a) What is the Payback Period for for each alternative?
Northeast
Southeast
Northwest
Southwest
Which alternative would you choose using the payback period?
b) What is the Net Present Value for each project using a 11% discount rate?
Northeast
Southeast
Northwest
Southwest
Which alternative would you choose using the NPV using a 11% discount rate?
c) What is the IRR for each Project?
Northeast
Southeast
Northwest
Southwest
Which alternative would you choose using the IRR?
. WITH BEST Nursing Writers TODAY AND GET AN AMAZING DISCOUNT
The post Evaluate and rank each alternative based on a) payback period, b) net present value (use an 11% discount rate), and c) internal rate of return. appeared first on BEST Nursing Writers .
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount! Use Discount Code “Newclient” for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
The post Evaluate and rank each alternative based on a) payback period, b) net present value (use an 11% discount rate), and c) internal rate of return. appeared first on The Nursing TermPaper.
