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: 

  1. 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%?
  2. What is the coming prize if you artifice to endow $200,000 for 5 years and the share scold is 5%?
  3. What is the share scold for an judicious endowment of $100,000 to increase to $300,000 in 10 years?
  4. 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?
  5. 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.