FNT1_Task2_FAQ - Presentation Section for Task II The...

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Sheet1 Page 1 FNT1 Task II FAQs FNT1 Task II FAQs Getting Started Make sure you have purchased the textbooks listed on the Course of Study. Download the task instructions and the financial s Calculating Net Income and Net Cash Flows Should I use all three years data for the first section of FNT1 task 2? For the first p This will not include any of the investment data. It is advisable to just use one year¿s worth of data for the first part of the task Net Present Value Where do I find the PV factors? The NPV factor can be found in your textbook. Find the Present Value Fac Value of $1. Use the hurdle rate or Weighted Average Cost of Capital (WACC) rate given in the case study. Use the decimal a m Internal Rate of Return How do I calculate Internal Rate of Return? You are required to use an excel function to calculate IRR . C Investment. Hint: For this example we are using straight-line depreciation and there is a salvage value amount. Generated by Clearspace on 2010-03-08-07:00 FNT1 Task II FAQs Payback Period This section is self explanatory. Investment minus cash flows per year until investment starts earning a return
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Unformatted text preview: . Presentation Section for Task II The second part of task 2 asks for a computer presentation. What should I use? For the comp u question. You can use multiple slides for a question. The first written question asks you to calculate Net Cash Flows for year 2 without depreciation. Does this mean I can just subt r a year 2 What do I need to explain in the written section for task 2? Outline you paper according to the scoring rubric in Taskstream When discussing NPV and IRR you should explain or define e your spreadsheet Explain what the ARR is. Explain how it is calculated Explain why ARR is different than IRR Explain the Pay b this in your paper very clearly. What are the preferred methods? WACC and NPV and WACC and IRR For this section you are basically going to repeat what you stated in the above sections . D Generated by Clearspace on 2010-03-08-07:00...
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