Question Details

Answered: - year 0 $ 1 2 3 4 5 6 7 $ $ $ $ $ $ $ NPV (24,000.00)


Determine whether there is a ranking conflict present in terms of the IRR and the NPV. Explain your answer. If a conflict does exist, explain how you would resolve the situation.


Document attached with the information needed. Thank you!


year

 

0 $

 

1

 

2

 

3

 

4

 

5

 

6

 

7

 


 

$

 

$

 

$

 

$

 

$

 

$

 

$

 


 

NPV

 


 

(24,000.00) $

 

8,400.00

 

4,800.00

 

7,800.00

 

6,200.00

 

5,500.00

 

4,600.00

 

3,000.00

 


 

$

 

$

 

$

 

$

 

$

 

$

 

$

 


 

(29,000.00)

 

9,100.00

 

8,800.00

 

8,300.00

 

8,000.00

 

5,100.00

 

4,000.00

 

3,500.00

 


 

$4,731.40

 

17.3%

 


 

IRR

 


 

$45.38

 

16.6%

 


 

Profitability index=PV of future cashflows/initial investments

 

B1

 

PV of cashflows

 

initial investments

 

profitability index

 


 

$

 

$

 


 

B2

 

$29,206.91

 

24,000.00 $

 

1.22 $

 


 

$34,418.30

 

29,000.00

 

1.19

 


 

I would choose to buy the packaging machine because the project has a higher NPV,higher IRR and higher profitability index than project B2

 


 

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

PRICE: $15

Solution~0001185358.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now