Evaluate the projects using each of the following criteria, stating which project(s) Insignia Corporation Limited should choose under each criteria and why: Payback Discounted Payback Net Present Value Profitability Index

The average accounting rate of return (AAR): Select one: A. is the best method of financially analysing mutually exclusive projects. B. is similar to the return on assets ratio. C. measures net income as a percentage of the sales generated by a project. D. considers the time value of money. E. is the primary methodology used in analyzing independent projects.

Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis? a. future value index b. price-level index c. rate of investment index d. present value index

10.-From the following options, choose the four that correspond to the application of financial management in the long term. A) Preparing financial reports B) Long-term investments C) Manage working capital D) Capital structure E) Support in identifying SWOT F) Budgeting G) Financial strategy   (Class excercise)

Compute the Profitability Index (PI)  for each project?   Project A Project B Profitability Index (PI)      5- In light of your answers above, suppose that these two projects might be mutually exclusive or independent. According to these two assumptions, fill in the blanks in the table below with the suitable answer:   Points Investment Criteria If A and B are mutually exclusive, then I would select If A and B are independent, then I would select   PBP       NPV       IRR       PI

Which term is used to represent the sales level that results in a project's net income exactly equalling zero? Group of answer choices Cash breakeven Operational breakeven Present value breakeven Financial breakeven Accounting profit breakeven

i. Whether profitable project or non-profit project the time value of money is important consideration among project planners and profesions develop a case of your choice demonstrating future value and present value computations to validate this statement ii. Define the following terms a) Cost benefit analysis b) Time value of money c) Capital d) Multiple rate of return e) Institutional appraisal

Exercise 14-7 (Algo) Net Present Value Analysis of Two Alternatives [LO14-2] Perit Industries has $110,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A $ 110,000 $0 $ 20,000 $ 8,600 1. Net present value project A 2. Net present value project B 3. Which investment alternative (if either) would you recommend that the company accept? 6 years Project B $0 $ 110,000 $ 68,000 $0 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 16%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest…

Which of the following tools is sometimes used to rank investment proposals? 01. 02. 03. 04. 05. Project assessment guide (PAG). Investment opportunity index. Annuity index. Profitability index. Capital ranking index.

The average accounting rate of return (AAR): is the primary methodology used in analyzing independent projects. O O O O O is the best method of financially analyzing mutually exclusive projects. is similar to the return on assets ratio. considers the time value of money. measures net income as a percentage of the sales generated by a project.