assignment 1 advise the company on which project it should prefer, taking as your investment criterion the following alternative measures : (i) What is each projects NPV? (ii) What is each project IRR? (iii) what is each projects payback period? (iv)whic

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assignment 1 

advise the company on which project it should prefer, taking as your investment criterion the following alternative measures :

(i) What is each projects NPV?

(ii) What is each project IRR?

(iii) what is each projects payback period?

(iv)which projects should be accepted?why?

(v) what are the non financial factor to be considered while evaluating investment projects?\

(b) comparing with NPV explain the major pitfalls of IRR technique of capital budgeting, particularly on why IRR may not be consistent to the shareholders wealth maximization when compared to NPV

assignment 2 

(i) the board of directors of crown limited is currently considering two mutually investment projects. both projects are concerned with the purchase of new plant. the following data is avilable for each projects 

project A project B

cost 100,000 60000

expected annual net profit or loss

year 1 29000 18000

year 2  (1000) (2000)

estimated residual value

7000 6000

assume the company's cost of capital is 10% and the company adopts the straight line method of depreciation 

    • 3 years ago
    assignment 1 advise the company on which project it should prefer, taking as your investment criterion the following alternative measures : (i) What is each projects NPV? (ii) What is each project IRR? (iii) what is each projects payback period? (iv)whic
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