Phoenix ACC 543 Net Present Value and Internal Rate of Return

Assignment Content

1.     For this assignment, refer to the scenario located in “Problems – Series A” section 10-19A of Ch. 10, “Planning for Capital Investments” of Fundamental Managerial Accounting Concepts. This scenario puts you at task as a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.
   
   
   Read the scenario in the textbook and complete the activity below.
   
   
   Use Excel®—showing all work and formulas—to compute the following:
   
   • Compute the net present value of each project.Round your computations to 2 decimal points.
   • Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points
   • Create a PowerPoint® presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:
     
   • Analyze the results of the net present value calculations and the significance of these results, supported with examples.
   • Determine which project should be adopted based on the net present value approach and provide rationale for your decision.
   • Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples.
   • Determine which project should be adopted based on the internal rate of return approach and provide rationale for your decision.
   • Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected.
   • Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.
   • Cite references to support your assignment.
     
     Format your citations according to APA guidelines.
     
     Submit the Excel spreadsheet along with the presentation.
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   • Attached is scenario needed for assignment.