Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Project Management Expert

Objective: This task will give you some experience using common time value of money related finance methods.
 
Specific Requirements for this Assignment:
 
1) You should use Microsoft Excel software for this assignment.

2) Submit a Microsoft Excel workbook titled SEB324 A3 Part 4.xlsx (or .xls)

3) Provide the computations and answers for all problems with one sheet in the workbook used for each problem. So that means your single submitted workbook file should consist of two spreadsheets. Label each spreadsheet in your workbook file respectively as problem 1 and problem 2.

4) Provide all answers to two decimal places and/or the nearest cent.

problem 1: You receive an offer in the mail from the Norman Harvey Bank inviting you to apply for a new personal loan. The offer invites you to access immediately up to $20,000 on this special personal loan with the principal amount to be repaid in full plus all accumulated interest in 24 months’ time. (There are no interim repayments to be made between now and when the total amount is due in 24 months’ time.) Interest will be computed on a monthly compounding basis at 0.72% per month. 
 
Also in the mail you have received an offer from the West Bank inviting you to apply for a new term deposit account which pays a nominal interest rate of 8.65% p.a. computed monthly on a compounding basis. The minimum initial deposited amount required is $20,000 and any deposits must be left in the account for a minimum of 24 months. 
 
You are considering applying for the personal loan from the Norman Harvey Bank in order to immediately invest the entire $20,000 into the West Bank term deposit account being offered. Does this investment opportunity offer a worthwhile positive return on investment from combining these two offers? Would you recommend this opportunity? Justify your answer.

problem 2: You have been asked to evaluate the financial viability of three investment options for your company. You are asked to use the Simple Payback, IRR, and NPV methods to evaluate the options and make a recommendation on which of them, if any, to proceed with. The selection of any option is mutually exclusive. Perform simple payback, IRR, and NPV analyses on the investment options.
 
The expected nominal cashflows for Years 1 through 5 produced by each investment option are provided in the table below. The initial amount required for all three-investment options is $15,000. For the NPV analysis assume a cost of capital of 10% p.a. For the IRR analyses assume the minimum rate of return required for any option to be considered viable is 15% p.a.

1324_nominal cash flows.jpg

Which investment option, if any, would you recommend and why? Justify your answer.

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M9348

Have any Question? 


Related Questions in Project Management

This is the brief for the third and final exercise for this

This is the brief for the third and final exercise for this project. Your group has been appointed as Project Manager by The Proprietary Very Limited Corporation (PVLC) to carry out development and feasibility analyses o ...

Your essay should be a properly constructed academic essay

Your essay should be a properly constructed academic essay of 5,000 words. It should contain an effective introduction, body and conclusion. The introduction should introduce the essay and include your argument. The body ...

Assessmentthis assignment involves the portfolio of

Assessment This assignment involves the Portfolio of Materials and Team Charter 1. Description and justification of the innovation process used. A 1-page plan/outline that explains how social media will be used A short b ...

Project investment analysis assignment -the aim of this

PROJECT INVESTMENT ANALYSIS ASSIGNMENT - The aim of this project is to introduce participants to concepts of Financial Feasibility Modelling and the use of spreadsheets for feasibility exercises. Assume that you have bee ...

Wahat are the similarities and differences between the

Wahat are the similarities and differences between the PMBOK and PRINCE2 approaches to project Stackholder management.

Case study and research project clairicationfinding a case

Case Study and Research Project Clairication Finding a case for the research project does not mean that you are limited to the company identified in the case. Rather it is to identify an issue identified in the case that ...

1 what are the limitations in a scrum-of-scrum approach2

1: What are the limitations in a scrum-of-scrum approach? 2: why are corporate culture and values so important to successfully implement an agile project management approach? 3: Can you explain the situation where we mig ...

1 what are some benefits and values of scheduling software

1) What are some benefits and values of scheduling software in a project schedule?

Annotated bibliographythis table lists criteria and

Annotated Bibliography This table lists criteria and criteria group name in the first column. The first row lists level names and includes scores if the rubric uses a numeric scoring method. Criteria Exemplary Competent ...

Project proposal -project - plan for implementing spc for

PROJECT PROPOSAL - Project - Plan for implementing SPC for improvement Introduction/aims/objectives - 200 words max Indicative literature review - 500 words max Indicative research methodology - 500 words max An idea to ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As