Hello there! Want a discount? Grab 5% OFFon your first order!
originalresearchpapers.com logo
Hello there! Want a discount? Grab 5% OFF on your first order!

Our Services

Get 15% Discount on your First Order

Review the scenarioScenario: Dwight Donovan, the president of Donovan Enterprises, is considering 2 investment

Review the scenario

Scenario: Dwight Donovan, the president of Donovan Enterprises, is considering 2 investment opportunities. Because of limited resources, he will be able to invest in only 1 of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of 4 years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Both investments are expected to provide cash flow benefits for the next 4 years. Donovan Enterprises’ desired rate of return is 8 percent. Your task as Senior Accountant is to use your knowledge of net present value and internal rate of return to identify the preferred method and best investment opportunity for the company and present your results to Dwight Donovan.

Use Excel®—showing all work and formulas—to compute the following:

· Compute the net present value of each project. Round your computations to 2 decimal points.

· Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points

Create an 8- to 12-slide PowerPoint® presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation: 

· Analyze the results of the net present value calculations and the significance of these results, supported with examples.

· Determine which project should be adopted based on the net present value approach and provide a rationale for your decision.

· Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples.

· Determine which project should be adopted based on the internal rate of return approach and provide a rationale for your decision.

· Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected.

· Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit the Excel spreadsheet along with the presentation.

 

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

    Discuss the implications that servant leadership,      entrepreneurship, ethics, and free market principles have had on the      industry you have

     Discuss the implications that servant leadership,      entrepreneurship, ethics, and free market principles have had on the      industry you have identified. Assuming your future career will be carried out in      this industry, include a discussion of how to integrate these principles      into your vision for your career once you

 Analyze and define the problem to include possible political conflicts. Identify risks and challenges. Identify and construct policy alternatives and

  Analyze and define the problem to include possible political conflicts. Identify risks and challenges. Identify and construct policy alternatives and solutions. Identify stakeholders and key roles. Identify funding opportunities, challenges, and budget cost factors; including saving measures. Select supportive and evaluative criteria. Identify incentives, subsidies, and potential benefits. Draw

You deserve a bonus!

Subscribe and get regular bonuses and discounts.