Need answers fo C and D Tortellini Company hired you as their Financial Analyst. The Cap Bud directorknows that with your expertise, you will be able to provide a comprehensiveanalysis using the different methods. He presented two proposed capital projectsthat is Project Alpha and Project Omega. Every project costs P10,000. A 12% costof capital was proposed for each project. The following are the projected netcash flows for the project:Expected Net Cash FlowsProject Alpha(P10,000)Project Omega(P10,000)3.5003,500Year16,50023,00033,0003,50041,0003,500Required:1. Calculate the following using the information above:A. payback periodB. Net Present Value (NPV)C. Internal Rate of Return (IRR)D. Modified Internal Rate of Return (MIRR).2. Which of the following projects, if independent, should be accepted?3. Which of the following projects, mutually exclusive should be accepted?

Solution: The internal rate of return(IRR) is the discount rate that makes the net present value…

knows that with your expertise, you will be able to provide a analysis using the different methods. He presented two prop that is Project Alpha and Project Omega. Every project cost of capital was proposed for each project. The following are cash flows for the project: Expected Net Cas Project Alpha (P10,000) Year 1 6,500 2 3,000 3,000 4 1,000 Required: 1. Calculote the following usina the information above:

knows that with your expertise, you will be able to provide a analysis using the different methods. He presented two prop that is Project Alpha and Project Omega. Every project cost of capital was proposed for each project. The following are cash flows for the project: Expected Net Cas Project Alpha (P10,000) Year 1 6,500 2 3,000 3,000 4 1,000 Required: 1. Calculote the following usina the information above:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.

Question

Need answers fo C and D

Tortellini Company hired you as their Financial Analyst. The Cap Bud director
knows that with your expertise, you will be able to provide a comprehensive
analysis using the different methods. He presented two proposed capital projects
that is Project Alpha and Project Omega. Every project costs P10,000. A 12% cost
of capital was proposed for each project. The following are the projected net
cash flows for the project:
Expected Net Cash Flows
Project Alpha
(P10,000)
Project Omega
(P10,000)
3.500
3,500
Year
1
6,500
2
3,000
3
3,000
3,500
4
1,000
3,500
Required:
1. Calculate the following using the information above:
A. payback period
B. Net Present Value (NPV)
C. Internal Rate of Return (IRR)
D. Modified Internal Rate of Return (MIRR).
2. Which of the following projects, if independent, should be accepted?
3. Which of the following projects, mutually exclusive should be accepted?

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