Indi project | Accounting homework help
2) Calculatethecashflowsassociatedwiththisproject.Calculatethesecash
Page 3 of 6 flows by year, andfor 20X4, separately calculate the cash flows that occur at the beginning and end of the year. You will have five cash flow calculations:
- Beginning of 20X4
- End of 20X4
- End of 20X5
- End of 20X6
- End of 20X7 (includes recurring cash flows and termination cash flows).
- 3) Comparetheaggregateundiscountedcashflowstotheaggregatenet income flows. Explainthe difference (if any).
- 4) Calculate the present value of the future cash flows.
- 5) Calculate the net present value and internal rate of return associated with this project.
- 6) Should Corporation B accept or reject this project? Explain your decision.
- 7) Comparetheinternalrateofreturntotheweightedaveragecostofcapital.Is the differencebetween the IRR and WACC consistent with ROE? Explain your answer.
- Deliverables
Submit one Word document. Number your answers to correspond to the numbers in this project file. Where written answers are required, prepare your responses in correct English grammar, and use spell check before submitting to your assignment folder. As a reminder, you are preparing this file to present to the Board of Directors for a job interview. Thus, it should be organized and easy to follow. All numeric answers must include the formulas used to find the answers. In other words, show how you derived all numeric answers. Use commas for all numbers greater than 999. Use a dollar sign and two decimal places for all dollar figures. State any assumptions you make to support your decisions. - Rubric The rubric is located in the Individual Project folder. - Tips for Success Download Appendix A, which is located in the Integrated Accounting & Financial Management Individual Project 1 folder. Page 4 of 6 Read the grading rubric before beginning the project to fully understand the requirements; ask questions about the requirements if needed. Read this project file until you fully understand the requirements. Use the financial ratio resources in the Week 2 module along with external resources. Use spell check before submitting your final version. Submit the deliverable on or before the due date. Review the Late Policy, which will be strictly enforced. It is located in Learning Resources/Late Policy. Ask your professor questions as needed. Adapted from "An Integrated Approach to Beginning Financial Accounting and Finance Courses,” by McWilliams, V. B., & Peters, M. F., 2012, Issues in Accounting Education, 27(1), p. 299–336. Copyright 2012 by the American Accounting Association. Page 5 of 6 Reference McWilliams, V. B., & Peters, M. F. (2012). An Integrated Approach to Beginning Financial Accounting and Finance Courses. Issues in Accounting Education, 27(1), 299–336.
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