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Assignment Details
Assignment Description Strategic decision makers are required to be able to evaluate projects based on the longterm objectives of the firm as well as the project’s ability to earn the company additional compensation. The 3 main tools used to make this evaluation are the payback period, net present value (NPV), and internal rate of return (IRR).
Year Project #1 Project #2 Project #3
0 ($30,000) ($32,000) ($35,000)
1 $11,000 $15,000 $11,000
2 $11,000 $14,000 $11,000
3 $11,000 $11,000 $11,000
4 $11,000 $2,000 $11,000
5 $11,000 $500 $11,000
Scenario NPV Rate
1 5%
2 5.5%
3 6%
Using the data in the tables above, answer the following questions:
Calculate the NPV for each project using each scenario's NPV rate. Show your work. Calculate the payback period for each project. Show your work. Calculate the IRR for each project. Show your work. Which project would the company select using the NPV method in scenario 1? Explain your answer. Which project would the company select using the NPV method in scenario 2? Explain your answer. Which project would the company select using the NPV method in scenario 3? Explain your answer. Which project would the company select using the payback period? Explain your answer. Which project would the company select using the IRR method? Explain your answer.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Reading Assignment Brealey, Myers, & Marcus, Chapter 8
Assignment Objectives Evaluate investment opportunities utilizing capital budgeting tools.
Other Information
Instructions: Instructor Comments
Please ensure you’ve listened to my chat carefully; I explain NPV, IRR and Payback period, what they mean and how to calculate them.
When calculating NPV you may use Excel or calculate these using the formula – I demonstrated this in chat; if you use Excel, it’s a good idea to doublecheck these calculations using the formula to ensure they’re accurate.
Either way, include your calculations in your project! You can copy and paste the Excel formula into your project
You might find these videos helpful as well;
Calculate IRR using Excel https://www.youtube.com/watch?v=Ug74NbL81CE
How to calculate Payback Period https://www.youtube.com/watch?v=NwSmUDvWTPA
Instructor's Comments: Keep a close eye on your TurnItIn Originality Verification Score, this should not exceed 25%, however, if you copy ¼ your discussion from the Internet, you can expect your work to be submitted to the University for investigation. In other words, even with a 25% score, if some of your work is copied from a source, you still may be sanctioned for plagiarism.
If your OV score does exceed 25%, please view your TurnItIn Report to ensure all work is original and is written entirely by you! You shouldn’t see a long string of words highlighted; this indicates it is verbatim from your source. You may go back and revise or repost your discussion to lower your score
I do not count your references in these scores, so if your use of references raises your score above 25%, this won’t be taken into account.
Remember plagiarism is defined as copying information and not writing ideas in your own words. All work is required to be written entirely by you!
Legend Extra Credit View Assignment Rubric
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© 2020 Colorado Technical University. All Rights Reserved. Authorized Users Only.
Unit 3 Individual Project
Assignment Overview
Unit: Capital Budgeting Techniques Due Date: Wed,3/11/20 Grading Type: Numeric Points Possible: 100 Points Earned: Deliverable Length: 800–1,000 words
Type: Individual Project
Go To:
Looking for tutoring? Go to Smarthinking
Assignment Details Scenario Learning Materials Reading Assignment
My Work:
Online Deliverables: Submissions
4:10 AM (CST)
Assignment Details
Assignment Description Strategic decision makers are required to be able to evaluate projects based on the longterm objectives of the firm as well as the project’s ability to earn the company additional compensation. The 3 main tools used to make this evaluation are the payback period, net present value (NPV), and internal rate of return (IRR).
Year Project #1 Project #2 Project #3
0 ($30,000) ($32,000) ($35,000)
1 $11,000 $15,000 $11,000
2 $11,000 $14,000 $11,000
3 $11,000 $11,000 $11,000
4 $11,000 $2,000 $11,000
5 $11,000 $500 $11,000
Scenario NPV Rate
1 5%
2 5.5%
3 6%
Using the data in the tables above, answer the following questions:
Calculate the NPV for each project using each scenario's NPV rate. Show your work. Calculate the payback period for each project. Show your work. Calculate the IRR for each project. Show your work. Which project would the company select using the NPV method in scenario 1? Explain your answer. Which project would the company select using the NPV method in scenario 2? Explain your answer. Which project would the company select using the NPV method in scenario 3? Explain your answer. Which project would the company select using the payback period? Explain your answer. Which project would the company select using the IRR method? Explain your answer.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Reading Assignment Brealey, Myers, & Marcus, Chapter 8
Assignment Objectives Evaluate investment opportunities utilizing capital budgeting tools.
Other Information
Instructions: Instructor Comments
Please ensure you’ve listened to my chat carefully; I explain NPV, IRR and Payback period, what they mean and how to calculate them.
When calculating NPV you may use Excel or calculate these using the formula – I demonstrated this in chat; if you use Excel, it’s a good idea to doublecheck these calculations using the formula to ensure they’re accurate.
Either way, include your calculations in your project! You can copy and paste the Excel formula into your project
You might find these videos helpful as well;
Calculate IRR using Excel https://www.youtube.com/watch?v=Ug74NbL81CE
How to calculate Payback Period https://www.youtube.com/watch?v=NwSmUDvWTPA
Instructor's Comments: Keep a close eye on your TurnItIn Originality Verification Score, this should not exceed 25%, however, if you copy ¼ your discussion from the Internet, you can expect your work to be submitted to the University for investigation. In other words, even with a 25% score, if some of your work is copied from a source, you still may be sanctioned for plagiarism.
If your OV score does exceed 25%, please view your TurnItIn Report to ensure all work is original and is written entirely by you! You shouldn’t see a long string of words highlighted; this indicates it is verbatim from your source. You may go back and revise or repost your discussion to lower your score
I do not count your references in these scores, so if your use of references raises your score above 25%, this won’t be taken into account.
Remember plagiarism is defined as copying information and not writing ideas in your own words. All work is required to be written entirely by you!
Legend Extra Credit View Assignment Rubric
Privacy Policy Terms of Use About Our Ads Contact Us
© 2020 Colorado Technical University. All Rights Reserved. Authorized Users Only.
Unit 3 Individual Project
Assignment Overview
Unit: Capital Budgeting Techniques Due Date: Wed,3/11/20 Grading Type: Numeric Points Possible: 100 Points Earned: Deliverable Length: 800–1,000 words
Type: Individual Project
Go To:
Looking for tutoring? Go to Smarthinking
Assignment Details Scenario Learning Materials Reading Assignment
My Work:
Online Deliverables: Submissions
