FINC 405 Week 1 Discussion | American Public University System
- american-public-university-system / FINC 405
- 20 Jan 2023
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FINC 405 Week 1 Discussion | American Public University System
W1:
Discussion
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Select one of the
questions below. Provide the calculation and analyze the exercise from both
concept and problem-solving perspectives. Support your thoughts with at least
one external reference (not your book).
1. A five-year project has a
projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in
the next five years. It will cost $50,000 to implement the project. If the
required rate of return is 20 percent, conduct a discounted cash flow
calculation to determine the NPV.
2. Two new software projects
are proposed to a young, start-up company. The Alpha project will cost $150,000
to develop and is expected to have an annual net cash flow of $40,000. The Beta
project will cost $200,000 to develop and is expected to have an annual net
cash flow of $50,000. The company is very concerned about its cash flow. Using
the payback period, which project is better from a cash flow standpoint? Why?
USA 
India