State, with reasons for which project you would accept. You should use the figures in the calculations worksheet for Net present value (NPV), Internal Rate of Return (IRR), accounting rate of return (ARR), and Payback Period
3BM070: Strategic Corporate Finance |
- Enter relevant cash flows into the data input Input cash inflows as positive numbers and cash outflows as negative numbers.
- Perform a sensitivity analysis on both projects. Use the sensitivity worksheet to adjust each variable and enter your results on the sensitivity
- Explain your reasons for any adjustments to the accountant’s figures and as a result of points a) to m) above. You should refer to any relevant accounting concepts.
- State, with reasons for which project you would accept. You should use the figures in the calculations worksheet for Net present value (NPV), Internal Rate of Return (IRR), accounting rate of return (ARR), and Payback Period
- Critically evaluate the results of your sensitivity analysis.
- Discuss the contribution expected values could make to the evaluation of the two projects.