A company has to select one of the following two projects: Project A 25,000 Project B 23,000 Cost Cash Inflows: Year 1 15.000 5,000 3,000 12.000 3,000 4,000 3,000 20,000 Year 2 Year 3 Year 4 1. Using the Internal Rate of Retum method suggest which is Preferable. 2. Show your Solution. 3. Defend your answer.
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- 2. NET firm is trying to decide between five mutually exclusive one- year projects. Project 1 Project 2 Project 3 Project 4 Project 5 Return Probability of return occurring 16 20 -16 36 48 -8 16 24 -40 0 100 1.0 1.0 0.25 0.50 0.25 0.25 0.50 0.25 0.10 0.60 0.30 Remember to regularly save your work Sheet 8 of 10 Module Code: ACF15084 Please work out the likely outcome for each project and discuss whether you can make informed decision according to this.You must choose one of these projects. Which one do you chose and why? Year 1 IRR NPV PI Project A Project B -50 80 60% 14 0.28 -120 180 50% 24 0.20ata table K Fabulous Fabricators needs to decide how to allocate space in its prod year. It is considering the following contracts: E a. What are the profitability indexes of the projed Data Table b. What should Fabulous Fabricators do? a. What are the profitability indexes of the projects? The profitability index for contract A is *** Contract A B C ck on the following icon in order to copy its contents into a spreadsheet.) Use of Facility 100% 60% 40% NPV $1.98 million $1.02 million $1.53 million (Round to two decimal places
- Refer to Exercise 19.11. 1. Compute the payback period for each project. Assume that the manager of the clinic accepts only projects with a payback period of three years or less. Offer some reasons why this may be a rational strategy even though the NPV computed in Exercise 19.11 may indicate otherwise. 2. Compute the accounting rate of return for each project.Apps ( MyWay : 01 - Introduction A this second one What percentage of the entire development effort should be devoted tO the PIP process? * O Less than 10% O Less than 5% O Between 20 and 30% O Between 10 and 20% Defining the necessary activities required to organize the initiation team m while they are working to define the scope of the project is the focus of which of the following activities? O Establishing the project initiation plan O Establishing management procedures O Establishing the project management environment and project workbook O Establishing the relationship with the customer A controlled process of initiating, planning, executing, and closing down a project best defines: O Project development O Systems management O Systems development O Project managementCalculate the result of NPV for project A with discount rate = 10%, the best solution is: Year 0 123 + 4 Select one: a. 95.5 b. 127.3 O b. O C. c. -181.8 O d. d. -136.4 A -800 100 200 300 200 B -200 50 70 80 240
- Assignment Exercise A1) Salalah company management is considering two competing investment Projects A and B. Project A 1000 Project B 1000 Year Initial Investment 1 275 300 275 300 275 300 4 275 300 300 5 275 DISCOUNT RATE 3.15% Q1) Use the information below and help the management in choosing the most desirable Project using all the following technique: استخدم المعلومات الواردة أدناه وساعد الإدارة في اختيار المشروع الأكثر رواجا باستخدام جميع الأساليب التالية 1) Payback Period Technique. 2) Discounted Payback Period Technique. 3) Net Present Value Technique 4) Profitability Index Technique. Q2) Based on your solution or answer to question 1, comment as to which proposal is better and why? بناءً على حلك أو إجابتك على السؤال 1 ، قم بالتعليق على أي اقتراح أفضل ولماذا؟Complete the following homework scenario:Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value. (You do not need to do further research.) Convey your understanding of the Time Value of Money principles used or not used in the three methods. Review the video titled "NPV, IRR, MIRR for Mac and PC Excel" (located at and previously listed in Week 4) to help you understand the foundational concepts:Scenario Information:Assume that two gas stations are for sale with the following cash flows: CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the timeline and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision…Complete the following homework scenario:Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value. (You do not need to do further research.) Convey your understanding of the Time Value of Money principles used or not used in the three methods. Review the video titled "NPV, IRR, MIRR for Mac and PC Excel" (located at and previously listed in Week 4) to help you understand the foundational concepts:Scenario Information:Assume that two gas stations are for sale with the following cash flows: CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the timeline and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision…
- Complete the following homework scenario:Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value. (You do not need to do further research.) Convey your understanding of the Time Value of Money principles used or not used in the three methods. Review the video titled "NPV, IRR, MIRR for Mac and PC Excel" (located at and previously listed in Week 4) to help you understand the foundational concepts:Scenario Information:Assume that two gas stations are for sale with the following cash flows: CF1 is the Cash Flow in the first year, and CF2 is the Cash Flow in the second year. This is the timeline and data used in calculating the Payback Period, Net Present Value, and Internal Rate of Return. The calculations are done for you. Your task is to select the best project and explain your decision. The methods are presented and the decision…How many paths are there in the network? Enter your response as a number ONLY. Refer to Problem 2 of the Practice Problems download. What is the project's expected completion time? Enter your response as a number only. DO NOT include any words such as "weeks" in your answer. Refer to Problem 2 of the Practice Problems download. What is the critical path for the network/project? Refer to Problem 2 of the Practice Problems download. Group of answer choices A-D-E-F-G A-B-E-F-G A-C-F-G A-B-D-C-E-F-G If activity B takes an additional 3 weeks, what is the impact on the project? Refer to Problem 2 of the Practice Problems download. Group of answer choices There is no impact on the project duration. Activity B has 6 weeks of slack time. The entire project will be delayed 3 weeks (28 instead of 25 weeks). The entire project will be delayed, but it will be less than 3 weeks as Activity B has some…How many IRRs could be estimated for each project below: Project A has ________ (1, 2.3. or 4) IRR(s). Project B has __________ (1,2,3, or 4) IRR(s). Project C has ____________ (1,2,3, or 4) IRR(s). Project D has___________ (1,2,3, or 4) IRR(s).