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

# [Solved] what are your recommendations for the above problem?

100% Pass and No Plagiarism Guaranteed

# Unit VII Assessment (capital budgeting)

INSTRUCTIONS:
(Part 1) Using a 5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below (note, the inflows are for each year). Based on your calculations rank the projects and support you answer. Project 1 Initial Invest= \$500,000, Cash inflows of \$100,000 for years 1-5 and \$50,000 for years 6-10. Project 2 Initial Invest= \$1,000,000, Cash inflows of \$400,000 for years 1-3, \$0 for years 4-7 and \$250,000 for years 8-10. Project 3 Initial Invest= \$800,000, Cash inflows of \$300,000 for years 1-5, \$0 for years 6-9 and \$100,000 for year 10. (Part 2) Assuming a budget of \$1,200,000 what are your recommendations for the three projects in the above problem. Explain. Assuming a budget of \$2,000,000 what are your recommendations for the above problem? Explain.
CONTENT:
Unit VII AssessmentName:Institution:Date:PART 1Various formal methods are usable in capital budgeting and in ensuring that suitable decisions are made in establishing viable projects to invest. These analysis methods are; Net Present value (NPV), Internal Rate of Return (IRR) and Payback Period (PBP).NPV is usable in estimating the value of potential project through valuation of discounted cash flow. On the other hand, the International rate of return abbreviated is the rate of discount that offers a zero to the net present value. This is regularly fit for measuring the efficiency of investment. Last, the payback period refers to time needed for the return on a certain investment in order to repay the amount of the initial investment. Therefore, in this paper, I will analyze 3 projects and rank them according to viability and later make decisions.PROJECT 1YEAR Cash flow in \$  Cumulative cash flow Discount rate@5% Present Value=Cash flow*Discount rate 1 100,000.00  100,000.00 0.9524 95,240.00 2 100,000.00  200,000.00 0.9070 90,700.00 3 100,000.00  300,000.00 0.8638 86,380.00 4 100,000.00  400,000.00 0.8227 82,270.00 5 100,000.00  500,000.00 0.7835 78,350.00 6 50,000.00  550,000.00 0.7462 37,310.00 7 50,000.00  600,000.00 0.7107 ...

100% Plagiarism Free & Custom Written,

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

## 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

Nov,06,2018

Nov,06,2018

Nov,06,2018

### Details

• Title: [Solved] what are your recommendations for the above problem?
• Price: £ 89
• Post Date: 2021-10-12T04:41:13+00:00
• Category: New Samples
• No Plagiarism Guarantee
• 100% Custom Written

### Customer Reviews

[Solved] what are your recommendations for the above problem?
Reviews: 5

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

I have tried other sites for assignment help but the result that Insta Research has produced outweighs others. Since I am weak at writing and shaping the data logically, I am glad I took help from this site. Thanks to my writer for such a great quality of the assignment in Business.