Help on the financial assignment
The assignment on Finances asks to apply discount cash flow techniques to analyze the value of the project proposal.
I know how to use the calculations based on the payback period, and I have searched such discount cash flow techniques as the Net Present Value (NPV) and the Internal Rate of Return (IRR).
But I still cannot do my assignment by myself, and I really do not know who can do it for me.
The problem is in the lack of time to dig deeper to understand differences.
Who can help me?
Use something like this formula for NPV = ∑ (Net Period Cash Flow / (1+R) ^T) – Initial Investment. I think you just need to put your numbers in the formula and calculate the result.
T stands for the period of cash flows, and R is for the selected discount rate.
Actual calculations for the financial assignment can be meaningless if the proper analysis is not provided. For example, when you calculate the NPV, analyze whether it is positive, negative, or zero.
This aspect is important to state whether the project can be potentially profitable and feasible. Using the IRR, analyze how it is related to the project life.
I do not trust myself in writing financial assignments as I am not good in calculations. Consult your instructor.
If you have the cash flow statements and all the necessary accounting information and numbers, you can use the online NPV and IRR calculators.
Actually, there is no much difference in spending the time on calculating the value using the Payback method or the NPV and the IRR. Just search the formula and use it in your calculations.