Review a paper | Business & Finance homework help
Moreover, citations should be included to show readers where information was obtained and give credit to its original authors. Furthermore – primary research can also be used as support when available; this may include interviews with experts or surveys which provide additional insight into the subject at hand. Ultimately – by including these points of evidence throughout a paper – one is able to create a more convincing case that is better able to withstand scrutiny!ured rate of return – in this case 12%. If the NPV is found to be positive, this suggests that the project should be accepted.
For example, in regards to Tata Motors investing 800 shares for $15 each and expecting an annual dividend of 14% over 2 years and 5% beyond that point- we can determine the NPV by taking into consideration all cash inflows (dividend payments) and outflows (initial investment). To calculate NPV:
Initial Investment=-$15 x 800 = -$12000
Cash Inflow 1=14%=$2100
Cash Inflow 2=5%=$2050
NPV=((($2100/$1.12) + ($2050/$1.122)) /(-$12000))*100 = 18.6%.
This suggests that with a required rate of return at 12%, Tata Motors’ project has a positive net present value of 18.6%, meaning it will generate returns greater than its cost of capital. Furthermore, our calculations show that the IRR for this project is 28%, which means it will yield an internal rate of return higher than its cost of capital as well.