Business Finance question
Question 8
Whichever project is chosen, if any, you require a 5% return on your investment.
What is the payback period for each project? If you base your decision on which project has the shortest payback, which will you choose?
Question 9
• Whichever project is chosen, if any, you require a 5% return on your investment.
What is the internal rate of return for each project? If you base your decision on the IRR, which will you choose?
Question 10 Whichever project is chosen, if any, you require a 5% return on your investment. 10. a. The CEO of your company notes that both projects cost the same, and both last for 5 years. Therefore, she suggests that the company pursue the project with the shortest payback. However, she does not want to be short sighted, and wants to know which project adds the most value to the company. What is the net present value of each project? 10. b. Considering the answers to questions 1, 2, and 3a, which project should you recommend?

Tutor Answer
Brown University
1271 Tutors
California Institute of Technology
2131 Tutors
Carnegie Mellon University
982 Tutors
Columbia University
1256 Tutors
Dartmouth University
2113 Tutors
Emory University
2279 Tutors
Harvard University
599 Tutors
Massachusetts Institute of Technology
2319 Tutors
New York University
1645 Tutors
Notre Dam University
1911 Tutors
Oklahoma University
2122 Tutors
Pennsylvania State University
932 Tutors
Princeton University
1211 Tutors
Stanford University
983 Tutors
University of California
1282 Tutors
Oxford University
123 Tutors
Yale University
2325 Tutors