Mgt 252 module 4 exercises

Mgt252 Module 4 Exercises

 

 

 

A project selection committee is comparing two proposals to see which proposal it will support.

 

Proposal A is for a project that will require the enterprise to invest its own money over a three year period of time. It is estimated that in Years 4, 5, and 6, the company can generate revenues from the deliverable produced by the project in the manner described in the table below.

 

Proposal B is for a cost-reimbursable contracted project executed for a client. Expenses are reimbursed as the project is carried out, so it requires little up front investment by the enterprise.

 

 

 

 

 

Proposal A: Self-funded Project

 

 

 

Year 1

 

Year 2

 

Year 3

 

Year 4

 

Year 5

 

Year 6

 

 

 

Revenue

 

 

 

0

 

 

 

0

 

 

 

0

 

 

 

800

 

 

 

800

 

 

 

800

 

Expense

 

300

 

400

 

300

 

0

 

0

 

0

 

 

 

 

 

 

 

Proposal B: Contracted, Cost-Reimbursable Project

 

 

 

Year 1

 

Year 2

 

Year 3

 

Year 4

 

Year 5

 

Year 6

 

Revenue

 

0

 

220

 

330

 

440

 

320

 

0

 

Expense

 

200

 

300

 

400

 

200

 

0

 

0

 

 

 

 

 

Assignment

 

 

1.  Whatis the profit associated with the project carried out in Proposal A?

 

Proposal B?

 

2.  When does payback occur on the project carried out in Proposal A? Proposal

 

B?

 

3.  Whatis the present value of revenue for the project carried out in Proposal A?

 

Proposal B? (In computing present value, do not discount the value forthe first year being examined. Assume i = .08)

 

4.  Whatis the present value of expense for the project carried out in Proposal

 

A? Proposal B? (In computing present value, do notdiscount the value for the first year being examined.)

 

5.  What is net present value for the project described in Proposal A? Proposal B? (In computing present value, do not discount the value for the first year being examined.)

 

6.  Whatis the internal rate of returnfor the project described in Proposal A?

 

Proposal B?

 

7.  If you could only support one of these projects, which one would it be?

 

Explain your rationale.







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10