{"id":49422,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/the-purpose-of-this-assignment-is-to-allow-the-student-to-calculate-the-project-cash-flow-using-net-present-value-npv-internal-rate-of-return-irr-and-the-payback-methods"},"modified":"2017-08-16T12:22:34","modified_gmt":"2017-08-16T12:22:34","slug":"the-purpose-of-this-assignment-is-to-allow-the-student-to-calculate-the-project-cash-flow-using-net-present-value-npv-internal-rate-of-return-irr-and-the-payback-methods","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/the-purpose-of-this-assignment-is-to-allow-the-student-to-calculate-the-project-cash-flow-using-net-present-value-npv-internal-rate-of-return-irr-and-the-payback-methods\/","title":{"rendered":"The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods."},"content":{"rendered":"<p><b>Purpose of Assignment<\/b>&nbsp;<\/p>\n<p>The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods.&nbsp;<\/p>\n<p><b>Assignment Steps&nbsp;<\/b><\/p>\n<p><b>Resources:<\/b>&nbsp;<i>Corporate Finance<\/i><\/p>\n<p><b>Create<\/b> a 350-word memo to management including the following:<\/p>\n<ul>\n<li>Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows.<\/li>\n<li>Describe the advantages and disadvantages of each method.&nbsp;<\/li>\n<\/ul>\n<p><b>Calculate&nbsp;<\/b>the following time value of money problems:&nbsp;<\/p>\n<ol>\n<li>If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?<\/li>\n<li>What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?<\/li>\n<li>What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?<\/li>\n<li>If your company purchases an annuity that will pay $50,000\/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?<\/li>\n<li>What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period.&nbsp;<\/li>\n<\/ol>\n<p><b>Calculate<\/b> the project cash flow generated for Project A and Project B using the NPV method.<\/p>\n<ul>\n<li>Which project would you select, and why?<\/li>\n<li>Which project would you select under the payback method? The discount rate is 10% for both projects.<\/li>\n<li>Use Microsoft\u00ae Excel\u00ae to prepare your answer.<\/li>\n<li>Note that a similar problem is in the textbook in Section 5.1.<\/li>\n<\/ul>\n<p>Sample Template for Project A and Project B:<\/p>\n<p><b>Show<\/b> all work.<\/p>\n<p><b>Submit<\/b> the memo and all calcluations.<\/p>\n<p><b>Click<\/b> the Assignment Files tab to submit your assignment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Purpose of Assignment&nbsp; The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods.&nbsp; Assignment Steps&nbsp; Resources:&nbsp;Corporate Finance Create a 350-word <a href=\"https:\/\/www.benedictsol.com\/blogs\/the-purpose-of-this-assignment-is-to-allow-the-student-to-calculate-the-project-cash-flow-using-net-present-value-npv-internal-rate-of-return-irr-and-the-payback-methods\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49422","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49422"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49422\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}