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  • Investment Detective Case

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    Jonathan Zhao
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    The Investment Detective 1. We cannot simply rank the project by inspecting the cash flow because we need to consider the time value of money and WACC. We should use capital budget tools to evaluate projects such as NPV and IRR. If NPV is negative, the project should be rejected because cash flows will also be negative.

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    The Investment Detective 1. We cannot simply rank the project by inspecting the cash flow because we need to consider the time value of money and WACC. We should use capital budget tools to evaluate projects such as NPV and IRR. If NPV is negative, the project should be rejected because cash flows will also be negative.

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    620 Ansichten1 Seite

    Investment Detective Case

    Hochgeladen von

    Jonathan Zhao
    The Investment Detective 1. We cannot simply rank the project by inspecting the cash flow because we need to consider the time value of money and WACC. We should use capital budget tools to evaluate projects such as NPV and IRR. If NPV is negative, the project should be rejected because cash flows will also be negative.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Als DOCX, PDF, TXT herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 1

    The Investment Detective

    1. We cannot simply rank the project by inspecting the cash flow because we need to consider the time value of money and WACC, We know the same amount of money received today worth less than receive in the future. We should use capital budget tools to evaluate projects such as NPV and IRR. If NPV is negative, the project should be rejected because cash flows will also be negative. 2.

    Project NPV IRR% Life Payback

    1 73.085 10.87 8 6.06

    2 -85.455 6.31 3 2.00

    3 393.92 11.33 15 14.20

    4 228.22 12.33 15 6.05

    5 129.702 0 11.12 15 7.14 10 1

    7 165.04 15.26 5 1.88

    8 182.984 11.41 7 6.08

    0.90

    3.

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