You are in charge of one division of Bigfella Conglomerate Inc. Your division is subject to

capital rationing. Your division has 4 indivisible projects available, detailed as follows:

Project

Initial

Outlay IRR NPV

1 2 million 18% 2,500,000

2 1 million 15% 950,000

3 1 million 10% 600,000

4 3 million 9% 2,000,000

Instruction: If you must select projects subject to a budget constraint of 5 million dollars, which

set of projects should be accepted so as to maximize firm value? Show the detail calculation.

Answers

Answer 1

Answer:

Bigfella Conglomerate Inc.

Capital rationing:

To select projects subject to a budget constraint of 5 million dollars, the set of projects that should be accepted in order to maximize firm value are:

Projects 1 and 4.  These projects yielded the highest annual returns and NPV, and the combination could survive under the budget constraint.

Explanation:

a) Data and Calculations:

Project      Initial Outlay      IRR           NPV             Expected Annual Returns

   1               2 million       18%       2,500,000      $360,000 (18% * $2 million)

  2              1 million         15%         950,000       $150,000 (15% * $1 million)

  3               1 million         10%         600,000       $100,000 (10% * $1 million)

 4              3 million          9%      2,000,000     $270,000 (9% * $3 million)

b) Based on a budget constraint of $5 million, the set of projects that should be accepted to maximize firm value is:

Project      Initial Outlay      IRR           NPV             Expected Annual Returns

 1               2 million        18%       2,500,000      $360,000 (18% * $2 million)

 4              3 million          9%      2,000,000     $270,000 (9% * $3 million)

Total         5 million                      4,500,000     $630,000

c) In terms of the net present value of cash inflows versus cash outflows, projects 1 and 4 perform far better than projects 2 and 3 combined with project 4.  The expected annual returns based on the Internal Rate of Return (IRR) also indicate that the combination of projects 1 and 4 outperform any other combination of projects.


Related Questions

Assume that there are two goods, A and B. In 2001Americans produced 10 units of A at a price $10 and 20 units of B at a price of $20. In 2007Americans produced 30 units of A at a price of $20 and 30 units of B at a price of $40. The Nominal GDP for 2007 is

Answers

Answer: $1,800

Explanation:

Nominal GDP in 2007 is the market value of the final goods and services produced in the country in that year.

= (30 * 20) + (30 * 40)

= 600 + 1,200

= $1,800

The interest in classical literature that began during the Renaissance was known as A.humanism B.heresy C.classicism D.philosophers Worth 10 points

Answers

Answer: A.humanism

Explanation:

Humanism is a direct consequence of the Renaissance. Humanism awakened the ideas of classical antiquity of literature and art, primarily Roman and Greek. Humanism appeared during the XIV. century but flourished during the XV. century. Giovanni Boccaccio and Francesco Pretarka are the most famous representatives of humanism.

List the three agricultural revolutions and their impact/advancements

Answers

The Agricultural Revolution, the unprecedented increase in agricultural production in Britain between the mid-17th and late 19th centuries, was linked to such new agricultural practices as crop rotation, selective breeding, and a more productive use of arable land.

hich of these is an example of an economic interest group?

American Federation of Labor and Congress of Industrial Organizations
the National Association for the Advancement of Colored People
Greenpeace
the National Organization of Women

Answers

Answer:

American Federation of Labor and Congress of Industrial Organizations

Explanation:

Economic interest group is an organization which established to influence the government to past economic legislations that benefited a certain groups.

American American Federation of Labor and Congress of Industrial Organizations that tried to influence the passing of economic legislations that benefits workers. They tend to support government representatives who advocated for improving worker's right, improving workplace's safety and minimum wage.

PLEASE HELP ME!! And pleas give an actual answer there isn’t any other question like this!!! What is the contour interval on this map?

Answers

Answer:

It would be on the Valley, ridge,  canyon, hope this helps!

Please mark as brainliest!

Hope this helped!

Explanation:

Which regions were largely unknown to most Americans in the early 1800's? Check all that apply.
US territory
Oregon Country
Mississippi Territory
Indiana Territory
Louisiana Territory

Answers

The regions that were largely unknown in the 1800s to the Americans were:

Mississippi TerritoryUS territoryLouisiana Territory

When did the Colonists start to live in the Americas?

Between roughly 1492 and 1800, Europe extensively colonized the Americas during the Age of Discovery.

The process of colonization started in the late 16th century with unsuccessful attempts by England to build long-term colonies in the North. In Virginia's Jamestown, the first English colony to last permanently was founded in 1607.

In 1620, the Pilgrims, who founded Plymouth, Massachusetts, arrived. The colonists prospered in both Virginia and Massachusetts with some help from Native Americans.

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the education act was introduced in the year​

Answers

Answer:

Huh?

Explanation:

Read the following excerpt from a report about some of the possible reasons college costs are increasing.
A major concern related to higher education's business model is that colleges and universities cannot or
will not control their cost increases. In for-profit industries when productivity goes up, salaries usualy go
up. This is different in public education.
Based on the excerpt, how is higher education different from for-profit industries?
O Salaries in higher education are higher because of business costs.
O Salaries in higher education are based on productivity.
O Salaries in higher education are lower because of business costs.
O Salaries in higher education are based on additional factors.

Answers

Answer:

The correct answer is - Salaries in higher education are based on additional factors.

Explanation:

In comparison to for-profit industries where salaries depend mainly on productivity, salaries in higher education depend on more than one factor it depends on the additional factor.

The salaries in higher education depend on several factors such as college costs, as they need to provide resources for the eduction process constantly so they can not control the cost increases and have to cost-cutting in salaries

The correct answer is - Salaries in higher education are based on additional factors.

Answer: D. Salaries in higher education are based on additional factors.

Explanation:

which statement
explains why excessive use of credit was a cause of the great depression this is

Answers

Answer:

In the 1920s, the Central Bank of America decided to implement an "Easy credit policy". This policy enable people to obtain credit even without solid predictors that they can  ever pay that credit back.

Originally, this was intended to promote economic development by increasing consumption.

Because of this leniency, many people in the country started to accumulated debts that they could never pay back. As a ripple effect, many companies are formed to close their operation because of the failure to obtain payments from their consumers. This caused major stocks started to experience a sharp decline in prices and caused the great depression.

Why did West Texas ranchers need to pump water out of aquifers to get water for their herds?
A.) Precipitation in West Texas is usually in the form of snow.

B.) Much of West Texas is mountainous, and it is hard to collect rainfall.

C.) Ranchers in West Texas use more water than farmers do.

D.) West Texas is very dry and gets little rainfall.

Answers

Answer:

A

Explanation:

just took the test :))

In Texas, snow is a unique phenomenon. But in other areas of the state, it can be seen once a year. Compared to the rest of the state. Thus, option A is correct.

What are the snow precipitation in Texas?

The state's biggest snowfalls occur in western Texas. This region encompasses El Paso (17.8 inches), Lubbock (8.2 inches), and Amarillo (17.8 inches) (6.9 inches).

The average amount of snowfall in North Central Texas is 4.2 inches, with Wichita Falls experiencing the highest amounts.

The Panhandle and West Texas appear to experience more snowfall. However, central Texas and even south Texas may get snow showers and ice.

Most of Texas experiences its wettest weather in the spring, with April and May ranking as the wettest months. September and October see a second peak in rainfall.

Therefore, Texas's annual precipitation shows a characteristic bimodal temporal pattern.

Learn more about Texas here:

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Plsss hellppp
Which statement best completes the diagram?
Effect
Cause
Foreign citizens want
to slow deforestation
in Brazil.
?
A. Foreign governments pay Brazil for cutting down fewer trees.
B. Foreign governments cut off all trade with Brazil.
C. Foreign military groups occupy much of the rain forest.
D. Foreign businesses are not allowed to operate in Brazil.

Answers

Answer:

A

Explanation:

I took the test

16. Why do we remember the Egyptians

Answers

Answer:

There are loads of firsts in ancient Egypt; that's why Egypt is important. For example, religion. Most people are shocked to learn that monotheism, the belief in one god, is first presented by an Egyptian pharaoh. ... For example, the Greeks, the famous Greeks, the ancient civilization, they revered ancient Egypt

Explanation:

Consider the topic of age discrimination. Is it ever appropriate to discriminate based on age?

Answers

Answer:

Age discrimination:

Discriminating or treating unfairly or stereotyping an individual or group of people on the basis of his/her/their age is known as age discrimination. This discrimanation can be various age groups such as above 40, 50, below 18, or any random age group in different conditions.

Generally, discrimination on the basis of age occurs in older ages in the employment setting as employers prefer young people and treat older people unfairly.

In my opinion no matter what is the condition if an individual willing to participate in anything others should not discriminate on the basis of age.

According to the information you just read, why has education policy become more complex over the years?

Answers

Answer: Because we have more and more knowledge on how the universe works. We also have much more diverse groups of students learning at the same time. ... All these factors taken together give rise to an increased complexity of education policy which is interested in providing the best possible education for students

Explanation:

Answer: The role of education has changed as the nation has grown and changed over time.

Explanation:

when a market economy operates without restriction is

Answers

Eliminates shortages and surpluses

Explain what is the Policy of Containment, and its four goals.

Answers

Answer:

Containment was a foreign policy strategy followed by the United States during the Cold War . First laid out by George F. Kennan in 1947, the policy stated that communism needed to be contained and isolated, or else it would spread to neighboring countries.

Policy is generally directed to achieve four major goals: stabilizing markets, promoting economic prosperity, ensuring business development, and promoting employment. Sometimes other objectives, like military spending or nationalization, are important.

Explanation:

hope this helps, pls mark brainliest :D

Why are young men more likely to support and engage in doping if they are dissatisfied with their bodies,

Answers

The correct answer to this open question is the following.

Young men are more likely to support and engage in d*ping if they are dissatisfied with their bodies because they, unfortunately, believe in the marketing and mass media "beauty" of "fitness" prototypes that they see on TV and social media.

And of course, that is an issue of concern.

It is a major issue I would say, in that most youngster's d*pe instead of asking for the opinion of a medical doctor or a professional nutritionist.

So if they d*pe, they are not conscious of the risks of doing this.

Young people have to understand that "ideal bodies" that appear in advertising are just a superficial prototype to sell products, and that's it.

Which enlightment ideal encouraged colonists to exercise a new type of political system decided by citizen through a vote?

Answers

Answer:

The idea of social equality

Explanation:

The coordinates of point A on a grid are (−3, −2). Point A is reflected across the y-axis to obtain point B. The coordinates of point B are (
, −2). (1 point)

Answers

Answer: A

Explanation:

What is the name for presidential duties and abilities that are listed directly in the United States Constitution

Answers

Executive power, The Constitution explicitly assigns the president the power to sign or veto legislation, command the armed forces, ask for the written opinion of their Cabinet, convene or adjourn Congress, grant reprieves and pardons, and receive ambassadors.

Training in how to handle hazards such as utilities and Hazardous Materials (HazMat) should be provided to responders by the:

Answers

Answer:

Authority Having Jurisdiction

Explanation:

Authority Having Jurisdiction is a combination of expert individuals and regulatory institutions or organizations who are well-grounded in the application and maintenance in handling issues relating to hazards in our immediate environment.

For example a building code inspector, director of an emergency management agency, etc.

This Authority Having Jurisdiction is responsible for training in how to handle hazards such as utilities and Hazardous Materials

Question 2 of 5
Which two languages are most widely spoken in Pacific South America?
A. English and Aymara
B. Spanish and Quechua
C. French and Portuguese
D. German and Guarani

Answers

french and portuguese

Why is the Japanese Canadian internment camp historical significant?

Answers

When the Pacific War began, discrimination against Japanese Canadians increased. On February 25, the federal government announced that Japanese Canadians were being moved for reasons of national security. In all, some 27,000 people were detained or arrested without charge or trial, and their property confiscated. During WWII, the government needed to intern Japanese Canadians for various legitimate reasons. The internment camps were established in the interior of British Columbia to remove them from the “safety zone” along the coast to prevent the possibility of sabotage. The Japanese placed in internment camps were used as cheap labor. Men worked on road construction in northern British Columbia. Many families were also transported to work on beet farms in Alberta and Manitoba. The total amount of deaths in the internment camps are recorded to be 267.

When campaign workers are canvassing neighborhoods, one of their goals is to identify voters who will support their candidate. sell campaign buttons door to door. determine the income level of a community. find out which candidate voters have selected.

Answers

Answer:

Identify voters who will support their candidate

Explanation:

Got it right on Edge 2020

hope this helps :)

A political campaign is a coordinated effort aimed at influencing the process of decision-making within a given group. Political campaigns are commonly used in democracies to refer to electoral campaigns in which representatives are elected or referendums are resolved.

Canvassing is the process of making systematic direct contact with individuals, which is often utilized in political campaigns.

Canvassing can also refer to a neighborhood sweep conducted by police as part of an inquiry.  

This is a method of interviewing shopkeepers, residents, and others who are in close proximity to a crime and may have important information.

The canvass is the official count of votes in a particular election. The goal of the canvass is to record for each and every ballot that is cast and verify that every valid vote is counted in the election results.

Therefore, the goal of canvassing is to find voters who will vote for their candidate. So Identification of voters is the correct answer.  

For more information regarding the election candidates, refer to the link:

https://brainly.com/question/16364340

How did Democrats react to losing power during Reconstruction?

They worked with the Republican-controlled Congress to compromise on issues.
They used violence and intimidation to prevent African Americans from voting.
They softened their stance on issues to gain the African American vote.
They forced Republican members of Congress to vote on their issues by using blackmail.

Answers

Answer:

imma have to go wit B

Explanation:

if yall say sum to mee im telling my mommy on yall

Answer:

Its B

Explanation:

Write True for night and False for wrong statements
a)One who commits crimes is called a social worker.
b)We should eat the food offered by unknown persons while we are travelling.
c)We should go to a crowded place carrying a lot of money.
d)We should close the doors and windows of our house and inform the closest neighbour while we leave home.
e)We should inform the police if any anti-social activity takes place in our locality.​

Answers

Answer:

1..False

2..False

3..False

4..True

5..True

why gandi start charkha movement​

Answers

Answer:

to build a new economic and social order based on self-sufficient non-exploitative village communities of the past

Explanation:

One of the main characteristics of the U.S. economic system is:
O A. promoting competition in important industries.
OB. forcing businesses to prioritize workers over profits.
OC. expanding the role of the government in the economy.
OD. restricting economic freedom for large businesses.

Answers

Answer: Promoting competition in important industries

Explanation: A

Answer:

A

Explanation:

Just took quiz

How a civilization crates an organized way of leadership.

Answers

Answer:

by voteing

Explanation:

1) The pyramids made use
of the Egyptians knowledge in
mathematics
gastronomy
O warfare
O mythology
Help

Answers

Answer:

Mathematics

Explanation:

Considering the level of scientific development that most societies possess at that time, Building the Pyramids cemented ancient Egyptians as one of the most mathematically advanced civilization in history.  The structure of the building require profound knowledge in Geometry that can't be found in other societies during that era.

Historians also noticed the same level of mathematical advancement in the way ancient Egyptians build their irrigation system. They managed to invent the pathway to relocate water from rivers to agricultural fields that located far away from the source.

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