# Using the payback method, irr, and npv

**Purpose of Assignment**

The view of this assignment is to assign the learner to weigh the design currency issue using net introduce prize (NPV), inside scold of repay (IRR), and the payback modes.

**Assignment Steps**** **

**Resources****:** *Corposcold Finance*

**Create** a 350-word memo to conduct including the forthcoming:

- Describe the use of inside scold of repay (IRR), net introduce prize (NPV), and the payback mode in evaluating design currency issues.
- Describe the advantages and disadvantages of each mode.

**Calculate **the forthcoming age prize of money gists:

- If you shortness to assemble $500,000 in 20 years, how plenteous do you want to confidence today that pays an share scold of 15%?
- What is the coming prize if you artifice to endow $200,000 for 5 years and the share scold is 5%?
- What is the share scold for an judicious endowment of $100,000 to increase to $300,000 in 10 years?
- If your congregation donations an annuity that earn pay $50,000/year for 10 years at a 11% allowance scold, what is the prize of the annuity on the donation end if the leading annuity reimbursement is made on the end of donation?
- What is the scold of repay required to assemble $400,000 if you endow $10,000 per year for 20 years. Assume all reimbursements are made at the end of the age.

**Calculate** the design currency issue generated for Design A and Design B using the NPV mode.

- Which design would you picked, and why?
- Which design would you picked underneathneath the payback mode? The allowance scold is 10% for twain designs.
- Use Microsoft
^{®}Excel^{®}to qualify your repartee. - Note that a congruous gist is in the textbook in Section 5.1.

Sample Template for Design A and Design B:

**Show** all labor.

**Submit** the memo and all calcluations.