Accounting Help for College and University Students

What is the IRR of the following set of cash flows?

What is the IRR of the following set of cash flows? Year 0 cash flow is -$2400; Year 1 cash flow is $640; Year 2 cash flow is $800; Year 3 cash flow is $2000.

Comparing investment criteria: payback, NPV, IRR, profitability index

Consider the following two mutually exclusive projects: (Please see attached spreadsheet for info.) Whichever project you choose, if any, you require a 15% return on your investment. a) If you apply the payback criterion, which investment will you choose? Why? b) If you apply the NPV criterion, which investment will y ...continues

B. C. Rogers: two mutually exclusive projects, required return, profitability index, NPV

B.C. Rogers, Inc., is presented with the following two mutually exclusive projects. The required return is 15%. PLEASE SEE ATTACHED SPREADSHEET FOR FIGURES. a) What is the profitability index for each project? b) What is the NPV for each project? c) Which, if either, of the projects should the company choose?

Bedknobs and Broomsticks: Two projects. What is IRR, NPV for each?

Bedknobs and Broomsticks, Inc., has the following two projects available. The required return is 14% PLEASE SEE ATTACHED SPREADSHEET a) What is the IRR for each project? b) What is the NPV for each project? c) Which, if either, of these two projects should the company choose?

Speedy Racer Corp: amount of the annual sales figure when evaluating this project

Speedy Racer Corp. currently sells 18,000 motor homes per year at $40,000 each, and 6,000 luxury motor coaches per year at $55,000 each. The company wants to introduce a new portable camper to fill out its project line; it hopes to sell 12,000 of these campers per year at $10,000 each. An independent consultant has determined ...continues

Carl's Bail Bonds: Calculate change in net working capital and net cash flow.

Last year, Carl's Bail Bonds reported sales of $58,200 and costs of $22,700. The following information was also reported for the same period: Beginning Accounts Receivable: $24,880 Ending Accounts Receivable: $21,520 Beginning Inventory: 4,270 Ending Inventory: 6,512 Beginning Accts Payable: 40,680 Ending Accts Pay ...continues

Pappy's Potato: Project Cash Flows, calculate payback period, NPV, and IRR

Pappy's Potato has come pu with a new product, the Pet Potato (they are freeze-dried to last longer). Pappy's paid $120,000 for a marketing survey to determine the viability of the product. It is felt that Pet Potato will generate sales of $270,000 per year. The fixed costs associated with this will be $115,000 per year, and ...continues

Kurt's Auto Shop Analysis of Cost-Cutting Proposals: should he buy the machine press?

Cost-Cutting Proposals. Kurt's Auto Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $450,000 is estimated to result in $195,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of ...continues

Maximizing profit on the sale of widgets

You can sell widgets for $50/Y, where Y is the number of widgets you sell. In other words, the more widgets you sell, the lower the price. It costs $1.5Y to make Y widgets. Using Excel, how many widgets do you make to maximize your profits?

ABC & XYZ Co: Financial Analysis of shares and company mergers

Expected Earning Number of Shares Market Price Per Share Tax Rate ABC Company $5,000,000 1,000,000 $100 50% XYZ Company $3,000,000 500,000 $ 60 50% The ABC Company wishes to acquire the XYZ Company. If the merger were effected through an exchange of shares, ABC would be willing to pay a 25% premium for the XYZ shares. ...continues