Please answer the following question .

FIRST GRADER essay writing company is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.

Order a Similar Paper Order a Different Paper

1. Payback Analysis

Two new wind-farm tower projects are proposed for a small company

that installs them in south western Pennsylvania. Project A will

cost $250,000 to complete and is expected to have an annual net

cash flow of $75,000. Project B will cost $150,000 to complete and

should generate annual net cash flows of $52,000. As a small

company, the owner and senior management team are very concerned

about their cash flow.

Use the payback period method and determine which project is better

from a cash flow standpoint.

Show your work and include any formulas used to calculate PP.

2. Net Present Value

A recent project nominated for consideration at your company has
a four-year cash flow of $20,000; $25,000; $30,000; and $50,000.
The cost of the project is $75,000.

a. If the required rate of return is 20%, conduct a discounted cash flow

calculation to determine the NPV.

b. What is the benefit-cost ratio for the project?

c. What would the
NPV of the above project be if the inflation rate was expected to
be 4% in each of the next four years?

You will be assessed on the correctness of your calculations
(40 points) and on presenting your work and results in a
professional manner (10 points)

Got stuck with another paper? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order

Order a Similar Paper Order a Different Paper