Luca Group. is considering investing in one of two possible projects (A & B) that will involve the development of a new production line: Corporate Finance Assignment, ICD, Ireland
|University||Independent Colleges Dublin (ICD)|
Luca Group. is considering investing in one of two possible projects (A & B) that will involve the development of a new production line.
The initial investment will be €11,500,000.
The company has a cost of capital of 10%. The Cash flows are as follows:
- Calculate for each project:
- The Payback period
- Net Present Value (NPV)
- Following the calculation of the above investment techniques identify which project should be undertaken by Luca Group. and outline the reasoning behind your choice
- Explain one advantage and one disadvantage of the Payback period method and the IRR method of investment appraisal.
- Briefly describe four different stakeholders in a Corporate Organisation, and explain how their objectives may vary
- Provide an explanation of Debt Factoring as a source of finance for the firm
- Explain how the Acid test liquidity ratio can be used by managers to control the business
Present Value Table
Present value of 1 i.e. (l + r)– n
where r = discount rate
n = number of periods until payment
If you're looking to buy assignments online in Ireland, look no further than QQIAssignments.com. Our team of experienced assignment writers are experts in a wide range of subjects and will work closely with you to ensure that your assignment meets all of your requirements. Visit QQIAssignments.com today and see the difference for yourself!