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Net Present Value and Internal Rate of Return Assignment Content Top of Form For this assignment, refer to the scenario located in “Problems – Series A” section 10-19A of Ch. 10, “Planning for...

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Net Present Value and Internal Rate of Return

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For this assignment, refer to the scenario located in “Problems – Series A” section 10-19A of Ch. 10, “Planning for Capital Investments” of Fundamental Managerial Accounting Concepts. This scenario puts you at task as a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.

Read the scenario in the textbook and complete the activity below.

Use Excel®—showing all work and formulas—to compute the following:

Compute the net present value of each project XXXXXXXXXXRound your computations to 2 decimal points.
Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points

Create a PowerPoint® presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:

Analyze the results of the net present value calculations and the significance of these results, supported with examples.
Determine which project should be adopted based on the net present value approach and provide rationale for your decision.
Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples.
Determine which project should be adopted based on the internal rate of return approach and provide rationale for your decision.
Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected.
Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit the Excel spreadsheet along with the presentation.

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accounting-homework-cont-2abwti0q.docx

Answered 5 days After Feb 26, 2021

Khushboo · Accepted Answer

Taxation system in India – An overview
INVESTMENT APPRAISAL ANALYSIS. 
AN INTRODUCTION.
The investment appraisal technique is used to evaluate the investment opportunity for the entity. It analyzes the different investment alternatives  available for the entity. It helps in making the decision regarding the selection of the investment proposal. The methods used in the investment appraisal technique are NPV method, IRR and various other methods.
Investment appraisal is important  method for the evaluation of different investment option. The methods used in the investment appraisal techniques are NPV,IRR and various others. 
2
ANALYSIS OF THE RESULT OF NPV
The NPV method is the significant method and considers the present value of cash movement i.e. movement in and out of the entity.(Thompson, Jayne 2021).
The NPV of Project A is $417,328.98 whereas that of the Project B is 174,880.30. Thus the NPV project A is greater than that of project B.
The project A is having higher cash benefits from the investment in project in comaprison to the cash benefits from the Project B.
		PROJECT A	PROJECT B
	Net Present Value	417328.98	174,880.30
The NPV of Project A is $417,328.98 whereas that of the Project B is 174,880.30. Thus the NPV project A is greater than that of project B.
3
ANALYSIS OF THE RESULT OF NPV
 The project with the greater NPV should be selected as it states that the present value of the cash benefits are greater as compared to cash usage.
The project A is having higher present value of cash inflows and it will yield more benefit to the entity in comparison to the project B.

Net Present Value and Internal Rate of Return Assignment Content Top of Form For this assignment, refer to the scenario located in “Problems – Series A” section 10-19A of Ch. 10, “Planning for...

Net Present Value and Internal Rate of Return

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