# Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

**Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 Let me do this assignment for you. The work I complete for you is guaranteed to be 100% original, plagiarism free, edited, APA formatted and just ready for you to add your name to it.Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 **

**Using the Payback Method, IRR, and NPV FIN 571 WEEK 3**

## DO YOU NEED HELP WITH YOUR SCHOOL?

## DO YOU NEED HELP WITH THIS ASSIGNMENT?

## CONTACT ME TO TODAY

## TO TAKE CARE OF ALL YOUR ACADEMIC NEEDS

# Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

## Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

**Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 **

**Purpose of Assignment**

The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods.

**Assignment Steps **

**Resources:** *Corporate Finance*

**Calculate **the following time value of money problems using **Microsoft Excel or Word**: *( all work must be shown, if using Excel you must submit the file)*

- If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?
- What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?
- What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?
- If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?
- What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period.

**Calculate** the project cash flow generated for Project A and Project B using the NPV method.

- Which project would you select, and why?
- Which project would you select under the payback method? The discount rate is 10% for both projects.
- Use Microsoft® Excel® to prepare your answer.
- Note that a similar problem is in the textbook in Section 5.1.

Sample Template for Project A and Project B:

*“Table showing investments and returns for Project A and Project B. Project A has $10,000 initial investment with $5,000 returns in each of the first 3 years. Project B has $55,000 initial investment with $20,000 in each of the first 3 years.”*

**Show** all work.

**Submit** Excel sheet with the calculations. **Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 **

## Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

# Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

The post Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 appeared first on LindasHelp.

**LET ME DO TAKE CARE OF YOUR SCHOOL WORK**

**Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 ** At https://lindashelp.com I offer a unique and confidential service for students like you. Through my personalized and customized original service, I can write your papers, do your presentations, discussion questions, labs, and final exams too. My personalized services is guaranteed to be 100% original, confidential, plagiarism free, edited, APA formatted and just ready for you to add your name to it. **Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 **

## Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

# Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

## Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

**Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 **

**Purpose of Assignment**

The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods.

**Assignment Steps **

**Resources:** *Corporate Finance*

**Calculate **the following time value of money problems using **Microsoft Excel or Word**: *( all work must be shown, if using Excel you must submit the file)*

- If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?
- What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?
- What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?
- If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?
- What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period.

**Calculate** the project cash flow generated for Project A and Project B using the NPV method.

- Which project would you select, and why?
- Which project would you select under the payback method? The discount rate is 10% for both projects.
- Use Microsoft® Excel® to prepare your answer.
- Note that a similar problem is in the textbook in Section 5.1.

Sample Template for Project A and Project B:

*“Table showing investments and returns for Project A and Project B. Project A has $10,000 initial investment with $5,000 returns in each of the first 3 years. Project B has $55,000 initial investment with $20,000 in each of the first 3 years.”*

**Show** all work.

**Submit** Excel sheet with the calculations. **Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 **

## Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

# Using the Payback Method, IRR, and NPV FIN 571 WEEK 3

The post Using the Payback Method, IRR, and NPV FIN 571 WEEK 3 appeared first on LindasHelp.

## OR

**Using the Payback Method, IRR, and NPV FIN 571 WEEK 3**