See attached

Net present Value

For this assignment, refer to the scenario located in** ?Problems ? Series A? section 10-19A of Ch. 10, ?Planning for Capital Investments? of Fundamental Managerial Accounting Concepts.
** This scenario puts you at the task as a Senior Accountant for Donovan Enterprises to identify the preferred method and best investment opportunity for the company.

**Read **the scenario in the textbook and complete the activity below.

*Dwight Donovan, the president of Donovan Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Donovan Enterprises? desired rate of return is 8%*

*Required:*

A. *Compute the net present value of each project. Which project should be adopted based on the net present value approach? Round your computations to two decimal points.*

B. *Compute the approximate internal rate of return of each project. Which one should be adoptee based on the internal rate of return approach? Round your rates to six decimal points. *

C. *Compare the net present value approach with the internal rate of return approach. Which method is better in the given circumstances? Why?*

**Use** Microsoft? Excel??showing all work and formulas?to compute the following:

? Compute the net present value of each project. Round your computations to 2 decimal points.

? Compute the approximate internal rate of return for each project. Round your rates to 6 decimal points

**Create **a PowerPoint? presentation showing the comparison of the net present value approach with the internal rate of return approach calculated above. Complete the following in your presentation:

? Analyze the results of the net present value calculations and the significance of these results, supported with examples.

? Determine which project should be adopted based on the net present value approach and provide a rationale for your decision.

? Analyze the results of the internal rate of return calculation and the significance of these results, supported with examples.

? Determine which project should be adopted based on the internal rate of return approach and provide a rationale for your decision.

? Determine the preferred method in the given circumstances and provide reasoning and details to support the method selected.

? Synthesize results of analyses and computations to determine the best investment opportunity to recommend to the president of Donovan Enterprises.

**Cite **references to support your assignment.