The Investment Detective free essay sample

This case presents the cash flows of eight unidentified investments, all of equal initial investment size. The student’s task is to rank the projects. The first objective of the case is to examine critically the principal capital-budgeting criteria. A second objective is to consider the problem that arises when net present value (NPV) and internal rate of return (IRR) disagree as to the ranking of two mutually exclusive projects. Finally, the case is a vehicle for introducing the problem created by attempting to rank projects of unequal life and the solution to that difficulty criterion. Please answer following questions 1. What analytical criteria can we use to rank the projects? How do you define each criterion? Please evaluate each project using all investment criteria we learned during the class. 2. Which of the two projects, 7 or 8, is more attractive? How sensitive is our ranking to the use of high discount rates? Why do NPV and IRR disagree? 3. We will write a custom essay sample on The Investment Detective or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page What rank should we assign to each project? Why do payback and NPV not agree completely? Which criterion is best? 4. Are those projects comparable on the basis of NPV? Because the projects have different lives, are we really measuring the â€Å"net present† value of the short-lived projects? (Question 4 Hint) Comparisons based on standard NPV ignore the inequality of project lives such as those in the case. Simply put, short-lived projects could be replicated within the life of the longest project (for example, project 6 could be replicated 15 times within the life of project 3), producing very different time profiles of cash flows for the projects. One solution to this problem is the so-called replacement-chain approach, in which shortlived projects are replicated out to a horizon common with the long-lived projects; the NPV on the entire chain is then calculated and compared with the NPV of the other chain. This approach can be cumbersome, however, in problems with many alternative investments.

Free Essays on Vicenente Aleixandre

like lips in, 1932, Pasà ­on de la Tierra which is Passion for the Earth in 1935 and La Destruccià ³n o el amor which is Destruction of Love, in 1935. However, it is with Aleixan... Free Essays on Vicenente Aleixandre Free Essays on Vicenente Aleixandre Vicente Aleixandre Spainish Poet Aleixandre is one of the most successful Spanish poets to both survive the Civil War and remain in Spain afterwards. A large part of this is due to the fact that his poems were non- political in nature. Aleixandre had a long-suffering struggle with tubercular nephritis, which kept him bed-ridden in a mountain retreat for much of the war. Aleixandre's significant contributions to modern poetry were recognized with the receipt of the Nobel Prize for Literature in 1977, He was 79 years old! Vicente Aleixandre was born in Seville, in 1898. He led a happy childhood. His father was an engineer, and the family was very close-knit. In fact, following their parents deaths, His moms in 1934 and his father in1940, both Vicente and his sister, Conchita, continued to live together in their parent's house. The family moved to Mlaga in 1902, and this scenic, coastal village proved to be a strong inspiration to Aleixandre's early poetry. He often evoked images of the sea and sun. However, he was late in developing as a poet. In college, Aleixandre studied business law and became a University law teacher in Madrid when he was only 22 years old. It was not until a close friend and poet, Dmaso Alonso, gave him a book of poetry by Rubà ©n Darà ­o, that he began writing in secret. Aleixandre did not devote himself to his hidden passion, until his illness forced him to leave his job at the age of 27. His early publications were well regarded and Vicente Aleixandre was rewarded Spain's National Prize for Literature in 1933 for his first four publications: mbito in english it is Ambit in Swords like lips in 1928, Espadas como labios which in english is Swords like lips in, 1932, Pasà ­on de la Tierra which is Passion for the Earth in 1935 and La Destruccià ³n o el amor which is Destruction of Love, in 1935. However, it is with Aleixan...