subject
Business, 06.05.2021 16:30 khoadominh2206

Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value. Project X Project Y Initial investment $254,666 $182,939 Net cash flows anticipated: Year 1 81,000 35,000 Year 2 60,000 56,000 Year 3 91,000 73,000 Year 4 82,000 69,000 Year 5 77,000 28,000 A. Compute the IRR for both projects using the IRR spreadsheet function. Project X fill in the blank 1 % Project Y fill in the blank 2 % B. Which project should be recommended.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 07:50
In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?
Answers: 2
question
Business, 22.06.2019 09:40
Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.
Answers: 1
question
Business, 22.06.2019 10:00
How has internet access changed and affected globalization from 2003 to 2013? a ten percent increase in internet access has had little effect on globalization. a twenty percent decrease in internet access has had little effect on globalization. a thirty percent increase in internet access has sped up globalization. a fifty percent decrease in internet access has slowed down globalization.
Answers: 1
question
Business, 22.06.2019 17:00
Explain how can you avoid conflict by adjusting
Answers: 1
You know the right answer?
Pitt Company is considering two alternative investments. The company requires a 12% return from its...
Questions
question
Mathematics, 24.11.2019 03:31
Questions on the website: 13722367