Lets call this project X.
Part 1. The project Shows an initial cash outlay of $91 million and it will generate a cash flow of $163 million in the seventh year.Therefore, the cashflows for the initial six years are zero.
We can easily compute the IRR using the IRR Function(=IRR(Values)) in the excel. The IRR is 8.68% for the project.
Or you can use the following formula.The CF0 will be 91 million, CF7 Would be 163 million and CF1-6 would be zero, as there are no cash flows in that period. But i'd suggest using excel or a financial calculator for this.
Part 2. This project should definitely be rejected, as the IRR of the project is significantly lower than the rate of return of the project. Which means that the NPV of the project would be negative. Hence, this project is not profitable.
Sodu can expand a succesful manufacturing line for an immediate investment of $91 million. The company...
please label the first answerand the secone answer. thank you This is a two part question. YOU MUST GET BOTH PARTS CORRECT TO EARN 5 POINTS PART 1: A firm is considering an unusual project of the selling of a machine today that will result in an immediate flow of $540 Without the use of the machine the firm will incur an annuity of expenditures or outlows of 567 per year that begin at the end of year one, and...
An auto plant that costs $110 million to build can produce a line of flexfuel cars that will produce cash flows with a present value of $150 million if the line is successful but only $60 million if it is unsuccessful. You believe that the probability of success is only about 40%. You learn whether the line is successful immediately after building the plant. a-1. Calculate the expected NPV. (do not round intermediate calculations. a negative amount should be indicated...
Language: JAVAPart a: Write a class called Geniegotchi with:1. Private data fields: name (of String type, initialized to “Bob”), endurance (of int type, initialized to 4) and happiness (of int type, initialized to 3);2. Public methods:-void setName(String newName) : renames Genie with newName, printsnewName confirmation to screen;void setName(String newName) : renames Genie with newName, printsnewName confirmation to screen;- intgetEndurance() : returns current endurance;-intgetHappiness() : returns current happiness;-void feed() : this method increases current endurance by 1 if endurance is less...
How can we assess whether a project is a success or a failure? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
Direction: review the eassy prof it and summerize it. Add thesis with it. make changes if posible Title The coporate puzzel When all you believe is people behind you until they turn their back on you. Times are hard when you are not to be worried about anything in life. I had a great job with a very working paid. Things were going smoothly until one day I had a call to my manager’s office saying he will like to...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...
Actions that damage a company and its employees should be stamped out, everyone would agree. But should the people responsible be stamped out, too? HBR CASE STUDY The Reign of Zero Tolerance by Ben Gerson "Mr. Pemberton?" manager. The guards had radioed her that the "Yes, that's me," Simon replied distractedly, his back turned. target wasn't putting up much resistance. "Your personal belongings will be messen The two burly gentlemen who had suddenly gered to your home later today," Sallie...
In your judgement, and given only the facts described in this case, should the management of Massey energy Company be held morally responsible for the deaths of the 29 miners? Explain in detail. Suppose that nothing more is learned about the explosion other than what is described in this case. Do you think Don Blankership should be held morally responsible for the deaths of the 29 miners? Explain in detail. Given only the facts described in this case, should the...
Budgeting for an Academic Department at a State University: Can You Believe the Numbers? INTRODUCTION You are the senior accounting faculty member in the business school and your dean, Dean Weller, is asking for help. She is very discouraged after a midyear budget meeting with the Vice President of Finance. The college's Department of Social Work has a large budget deficit, and because of this the VP is inclined towards closing the department entirely or closing its bachelor's program. The...
Evaluate the arical writ the response in which you state your agreement or disagreement with writer up un these questions guidelines 1) can empathy lead us astrary? how 2) our heart will always go out to the baby in the well, its a measure of our humanity. but empathy will have to yield to reason if humanity is to have a future can empathy yield to reason? how? thank you The Baby in the Well: The Case against Empathy* -Paul...