We're Open
+44 7340 9595 39
+44 20 3239 6980

Which project(s) should you accept if the discount rate is 7 percent?

  100% Pass and No Plagiarism Guaranteed

Which project(s) should you accept if the discount rate is 7 percent?

Cash Flow Writing Assignments: Projects With Positive NPV

INSTRUCTIONS:

Writing assignments (Due Saturday as a Word or Excel file) Show ALL Work
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent?

Radiology Associates is considering an investment which will cost $259,000. The investment produces no cash flows for the first year. In the second year, the cash inflow is $58,000. This inflow will increase to $150,000 and then $200,000 for the following two years before ceasing permanently. The firm requires a 14 percent rate of return and has a required discounted payback period of three years. Accept or reject this project? Why?

CONTENT:

Name

Institution

Date

Writing assignments (Due Saturday as a Word or Excel file) Show ALL Work
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent?

At 7 % the NPV for project A is cash inflows – cash outflows, ($ 360,000* 0.8163) - $275,0000= $18,868

Project B, NPV= $113,600*0.0.9346+ ($81,900*0.8734) + ($47,000*0.8163) - $202,000= $14,068

At 10 % NPV project A= ($360,000*0.7513) - $ 360,000= ($4,532)

NPV Project B = ($116,600*0.9091) + ($81,900*0.8264) + ($47,000*0.7513) - $202,000= $4,267

* At 7% choose Project A with higher NPV

* At 10% choose project B with higher NPV

1 Radiology Associates is considering an investment which will cost $259,000. The

...

100% Plagiarism Free & Custom Written,
Tailored to your instructions


International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120


100% Pass Guarantee

STILL NOT CONVINCED?

View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Recent Updates

Details

  • Title: Which project(s) should you accept if the discount rate is 7 percent?
  • Price: £ 99
  • Post Date: 2021-08-31T04:35:59+00:00
  • Category: Essays
  • No Plagiarism Guarantee
  • 100% Custom Written

Customer Reviews

Which project(s) should you accept if the discount rate is 7 percent? Which project(s) should you accept if the discount rate is 7 percent?
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

I received my order last night and now I’m writing my reviews. My assignment has all the points I needed along with a good style. The citations used are relatable and professional. The best thing is the discount I got because I recommended my friend too to use their service. I am so pleased to use this effective service. The features are also amazing, everything is good. Will come again soon!
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

This is my second order which I booked recently at Insta Research. I just got my coursework completed expertly. Just waiting for good scores now.