Ashford University Net Present Value Financial Analysis Tool Case Study
Can you help me understand this Business question?
For this exercise, you need to calculate the NPV for a project
described below. Make sure you study the “Numeric Models:
Profit/Profitability” section in Chapter 2 of the textbook before trying
to solve the problem. You are the manager of a construction company
with a five-year project that has a projected net cash flow of $25,000,
$35,000, $45,000, $20,000 and $15,000. Implementation costs are $50,000.
The company has a required rate of return of 20%. Compute the
discounted cash flow and determine the NPV. Include your calculations in
an appendix after the references page. Include information on what
projected net cash flow, discounted cash flow and NPV are, why they are
useful in project selection, and, given the numbers, if this example
project meets the company requirements, and why or why not.
- Prepare
a 3- to 4-page paper (not including the required title and reference
pages and the appendix) detailing and compiling the specifics to items
above. - Support your paper with a minimum of two current
(published in the most recent five years) scholarly sources from the CSU
Global Library, in addition to any course textbooks or lecture material
you decide to use. - Format your entire paper according to the CSU Global Writing Center (Links to an external site.).
- Be
clear, concise, and focused. Be sure to organize your writing properly
and include an introduction; headings/subheadings for the body of your
work; analysis and recommendations (if applicable); a conclusion; list
of references; and an appendix.
APA 7 format please
Works cited
Reference page as well
Optional Resources
Review any of the following videos for additional information on how to calculate NPV:
- Calculate the Net Present Value of an Investment (Links to an external site.)
- Introduce Net Present Value and Internal Rate of Return
