Purpose of Assignment 

The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods. 

Assignment Steps

Resources: Corporate Finance

Create a 350-word memo to management including the following:

• Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows.
• Describe the advantages and disadvantages of each method. 

Calculate the following time value of money problems: 

1. If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?
2. What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?
3. What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?
4. If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?
5. What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period. 

Calculate the project cash flow generated for Project A and Project B using the NPV method. 

• Which project would you select, and why? 
• Which project would you select under the payback method? The discount rate is 10% for both projects. 
• Use Microsoft® Excel® to prepare your answer. 
• Note that a similar problem is in the textbook in Section 5.1.

Sample Template for Project A and Project B: 

Show all work.

Submit the memo and all calcluations.

Click the Assignment Files tab to submit your assignment.

Use the attached files to complete the assignement.

Purpose of Assignment

The purpose of this assignment is to allow the students an opportunity to complete their financial evaluation of a company using the financial research database Plunkett Research Online. Plunkett Research Online provides in-depth analysis of a company’s financials, comparisons to industry averages, a list of top executives, how the company compares to other competitors in terms of revenue, number of employees, market capitalization and other key financial metrics.

Assignment Steps

Resources: Plunket Research Online located in the Week 3 Electronic Reserve Readings; Microsoft® Excel®

Access the the Plunkett Research database in the University Library by following these steps:

1. Click on the University Library link.
2. Click “Company Directories and Financials” under Library Resources.
3. Click “Plunkett Research Online” under Company Directory and Financials.
4. Review the following “HOW TO USE” videos:
   • Plunkett Research Online Overview
   • How to Export Company and Exec. Lists
   • How to Build-a-Report
   • How to Use Industry Analytics
   • How to Research an Industry
   • How to Use Company Profiles
5. Click “Research A Company.”
6. Select a company (i.e. Walmart) and input into the Search Box.
7. Scroll through the search results to choose the correct company.
8. Click the link to the company profile (in blue). 

Review the Company Profile and answer the following questions in Microsoft® Word: 

• What is the Ticker Symbol for the company you have selected?
• When was the company established?
• How many employees does it have?
• What is the NAICS Code?
• Who is the CEO?
• Where does the company rank in terms of Total Revenue when compared to its competitors?
• Where does the company rank in terms of Net Income when compared to its competitors?
• Where does the company rank in terms of Return on Assets when compared to its competitors?
• What is the Revenue in 2014 and 2015?
• What was the Gross Margin in 2014 and 2015?
• What was the Earnings per Share in 2014 and 2015? 

Save the Company Profile as a PDF document. 

Compare the 2015 Company Financials to the Industry Averages and export the results into a Microsoft® Excel® document. 

Add a new column in your Microsoft® Excel® document titled “Change” and calculate the difference between the company’s 2015 financial results and the industry averages. 

Explain in 1,050 words how the company you selected compares to the industry averages in terms of financial profitability, liquidity and solvency, and why the difference is important. Also review the financial statements over the last three years, and discuss any positive and negative trends would you report to the company’s management.

Submit the calculations as well as the explanation.

Click the Assignment Files tab to submit your assignment. 

Note: Grades are awarded based upon individual contributions to the Learning Team assignment. Each Learning Team member receives a grade based upon his/her contributions to the team assignment. Not all students may receive the same grade for the team assignment.