icon

UseTopicwritingscode to get 5% OFF on your first order!

MBA-Finance, Accounting, Investments

Showed needed! Must know how to do the calculations for MBA accounting Finance and investments. I  have attached an example of a previous paper done. DO NOT plagiarizer it. Please follow the rubric completely, and use references from data bases that are legitimate and trusted.

The Allied Group is considering two investments. The first investment involves a packaging machine, which can be used to package garments for shipping orders to customers. The second possible investment would be a molding machine that would be used to mold the mannequin parts.

The first possible investment is the packaging machine, which will cost $14,000. The second investment, the molding machine, would cost $12,000. The expected cash flows for the two projects are given below and the cost of capital to the firm is 15%. Both machines will be unusable after five years and have no salvage value.
The net cash flows for the two possible projects are given in the following table:

Year            Packaging Machine          Molding Machine
0                          ($14000)                            ($12,000)
1                            4100                                    3200
2                            3300                                    2800
3                            2900                                    2800             
4                            2200                                    2200
5                            1200                                    2200

Address all of the following questions in a brief but thorough manner.

What is each project’s payback period? Provide a detailed explanation of how you calculated the payback period for each.
What is the NPV for each project? Provide a detailed explanation of how you calculated the payback period for each.
What is the IRR for each project? Provide a detailed explanation of how you calculated the internal rate of return (IRR) for each.
If both of the projects can be selected, then should both be selected? Why or why not? Explain why or why not.If the two projects are mutually exclusive, which project, if any, should be selected? Explain why.

You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes