different investments and to decide which fixed assets to purchase. In the following‚ four different methods of investment appraisal shall be discussed: accounting rate of return (ARR)‚ payback period‚ net present value (NPV) and internal rate of return (IRR). The ARR expresses the return on an investment as an annual percentage of the cost of that investment. To decide whether to accept or reject a project‚ organisations can set a minimum ARR which needs to be exceeded by the project’s ARR. The advantages
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“Internal rate of return (IRR) is the discount rate that gives the project a zero NPV” (McLaney‚ 2006). It is a good choice to use for investment projects. There is a formula for the internal rate of return: (A is the lower discount rate and B is the higher rate‚ a is the NPV at the lower rate and b is the NPV at the higher rate.) For example the Net Present Value (NPV) is 88 when the discount rate is 20%‚ and the NPV is 12 when the discount rate is 30%. Therefore the IRR in this situation is 28
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WOLF PAULUS JOURNAL ABOUT JOURNAL » SOFTWARE SYSTEMS TALKS VIDEOS CONTACT HOME » MAC OS X » INSTALLING TOMCAT 7.0.X ON OS X INSTALLING TOMCAT 7.0.X ON OS X Search for: Search ABOUT ME My name is Wolf Paulus‚ a photographer‚ hiker‚ hacker‚ technologist based in Ramona‚ California. Posted by Wolf Paulus on Oct 22‚ 2012 | 166 comments Tomcat 7 is the first Apache Tomcat release to support the Servlet 3.0‚ JSP 2.2‚ and EL 2.2 specifications. Please note that Tomcat
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100 words for each problem. 1) Rainbow Products 20 points | Machine Purchase | Machine plus service contract | Enhanced Machine | Payback period | 7 Years | 7.78 Years | 7.65 Years | NPV | ($945.68) | $2‚500.00 | $15‚000.00 | IRR | 11.49% | 12.86% | 15.43% | Decision (Yes/No) | NO | YES | YES | We would advise Rainbow Products to not purchase the paint-mixing equipment unless they decided take on the additional $500 per year expenditure to service the machine‚ or decided
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Capital Budget Recommendation Guillermo Furniture Overview Guillermo Navalez is an owner of a small furniture manufacturing company near his home‚ Sonora‚ Mexico. Sonora offers mild weather‚ beautiful scenery‚ and inexpensive housing. Guillermo is the largest manufacturer of furniture in his area where the supply of timber for tables and chairs is easily accessible due to the nature of resources (University of Phoenix‚ 2010). Labor is also inexpensive and Guillermo was making profit up until
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Clark Paints: The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchasing them. The equipment needed would cost $200‚000‚ with a disposal value of $40‚000‚ and it would be able to produce 5‚500‚000 cans over the life of the machinery. The production department estimates that approximately 1‚100‚000 cans would be needed for each of the next five years. The company would hire
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The air travel accounts for almost 11% of Europe ’s GDP and 24 million jobs. Air travel is the most popular mode of travel for both UK residents travelling abroad and for overseas residents visiting the UK. In 2005‚ UK residents made a record 53.6 million visits by air‚ representing almost four-fifths of all visits abroad (Friends of The Earth‚ 2006). The aviation industry currently faces a lot of impediments due to growing impacts of climate change‚ local air quality‚ surface access conjunction
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returns and related risks. The analysis will include the necessary financial models NPV‚IRR and Sensitivity by calculating the discounted cash flows‚ but also take into consideration economic characteristics (PESTLE) as well as other driving forces in relevant to the mobile phone industry such as competition (Porter’s Five Forces ) 2 Recommendations (See Figures 1 & 2 for visual representation of NPV and IRR) The ethos of Sky-Blue’s business activities are based on technological advances and
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capital planning? Why is IRR important to an organization? Why is NPV important to a project? How would you select from multiple projects presented to your organization? Capital Planning is a set of plans that a company uses in order to determine if long-term assets are worth their value. It is also a form of budgeting. IRR is important because the higher it is‚ the more a certain project can be considered. Every organization have plans for certain projects and the IRR is considered when trying
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life. The project will generate additional revenues of $64‚000 in year 1 and these revenues will grow annually at a rate of 10%. The additional expenses of the project will be $15‚000 in year 1 and will grow annually at 8%. What is the NPV and the IRR of the Project? Would you accept or reject this problem? Precisely state the reason why. Solution:- Telecom Italia | | | | | | | | | Year | | 0 | 1 | 2 | 3 | 4 | 5 | | | | | | | | | | | | | | | |
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