Question

to evaluate a project which would be the most accurate measure NPV, IRR, or payback period...

to evaluate a project which would be the most accurate measure NPV, IRR, or payback period also which is the easiest to calculate without a computer

Homework Answers

Answer #1

NET PRESENT VALUE will be the BEST measure to calculate the acceptability or rejection of a project using capital budgeting method because net present value method is a method which will be used under various circumstances and it can even be used in case of uneven cash flows so it has an advantage over internal rate of return and other payback period because payback period will not be even considering the discounted cash flows and time value concept.

when we are calculating without a computer then the EASIEST method to calculate is payback period method because PAYBACK PERIOD method will not be even considering the time value of money so one will not need to discount the cash flows.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$75,000 and expected free cash flows of ​$26,000 at the end of each year for 5 years. The required rate of return for this project is 7 percent. a. What is the​ project's payback​ period? b. What is the​ project's NPV​? c. What is the​ project's PI​? d. What is the​ project's IRR​?
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...
​(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash outlay of ​$80,000 and expected free cash flows of ​$26,000 at the end of each year for 6 years. The required rate of return for this project is 7 percent. a. What is the​ project's payback​ period? b. What is the​ project's NPV​? c. What is the​ project's PI​? d. What is the​ project's IRR​? a. The​ project's payback period is nothing years.  ​(Round...
Calculate NPV, payback period and IRR for the following project given a required return of 10%:...
Calculate NPV, payback period and IRR for the following project given a required return of 10%: Project z Time 0 1 2 3 4 5 Cash Flow -11,000 6,230 4,120 1,530 3,500 990
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of...
Please show your steps! Question 1 a) What is the NPV, IRR, and payback period of a project with the following cash flows if WACC is 20%? Time: 0 1 2 3 4 5 -$350,000 $100,000 $100,000 $100,000 $50,000 $50,000 NPV= IRR= Payback period= b) Should you accept or reject the project according to NPV and IRR? *can you please include greater than an less than signs.* Thank you.
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR,...
A project has the following cash flows. What is the payback period, NPV, PI, IRR, MIRR, and EAA? Assume an interest rate of 5%. Year CF ($) 0) -5,000 1). 2,700 2). 3,300 3) 1,400 4). 330 5) 340 Also upload your excel files showing your work.
Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project....
Compute the Payback period, NPV, IRR, and PI and give accept/reject decision for the following project. The cost of capital is 10 percent. Assume the policy payback period is 3 years. Year Cash Inflow (Outflow) 0 (400) 1 100 2 200 3 200 4 300
​Payback, NPV, and IRR: Rieger International is evaluating the feasibility of investing ​$96,000 in a piece...
​Payback, NPV, and IRR: Rieger International is evaluating the feasibility of investing ​$96,000 in a piece of equipment that has a 5​-year life. The firm has estimated the cash inflows associated with the proposal as shown in the following​ table: The firm has a 8% cost of capital. a.  Calculate the payback period for the proposed investment. b.  Calculate the net present value​ (NPV) for the proposed investment. c.  Calculate the internal rate of return ​(IRR)​, rounded to the nearest...
Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $95 comma 00095,000 in...
Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $95 comma 00095,000 in a piece of equipment that has a 55 -year life. The firm has estimated the cash inflows associated with the proposal as shown in the following table: LOADING... . The firm has a 99 % cost of capital. a. Calculate the payback period for the proposed investment. b. Calculate the net present value (NPV) for the proposed investment. c. Calculate the internal rate of...
Evaluate the following projects. If the projects are mutually exclusive, which project is most likely to...
Evaluate the following projects. If the projects are mutually exclusive, which project is most likely to be acceptable? Project NPV Payback IRR PI A 1.08m 2 years 9% 1.6 B 0.5m 2.5 years 7% 1.3 C 0.15m 2 years 7% 1.05 B A and B C A
Why do you think the NPV and IRR models are superior to the payback period and...
Why do you think the NPV and IRR models are superior to the payback period and the accounting rate of return models? Explain.