$22$

EX$2-5($Algo$)$ You are the head of the project...

$4\mathrm{.}16$

points

References

You are the head of the project selection team at SIMSOX. Your team is considering three different projects. Based on past history, SIMSOX expects at least a rate of return of $24$ percent.

Given the following information for each project, which one should be SIMSOX's first priority? Should SIMSOX fund any of the other projects? $($Use the NPV function in Excel to solve this problem. Negative amount should be indicated by a minus sign.$)$

Project: Dust Devils

$\backslash$table$[[$Year$,$Investment,Revenue Stream$],[0,590,000,0],[1,,55,000],[2,,295,000],[3,,395,000]]$

Project: Ospry

$\backslash$table$[[$Year$,$Investment,Revenue Stream$],[0,340,000,0],[1,,46,000],[2,,46,000],[3,,46,000],[4,,83,000]]$

Project: Voyagers

$\backslash$table$[[$Year$,$Investment,Revenue Stream$],[0,93,000,0],[1,,33,000],[2,,25,000],[3,,68,000],[4,59,000,],[5,,141,000]]$

$\backslash$table$[[$The NPV for Dust Devils is$],[$The NPV for Ospry is$],[$The NPV for Voyagers is$],[$How many projects should be funded?$]]$