You are given $10,000 capital budget and your firm has shortlisted eight potential investment projects (see...

  

  

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You are given $10,000 capital budget and your firm has shortlisted eight potential investment projects (see attached case) for you to construct a portfolio. The constraints and requirements are as follows: • State your investment objective clearly on how to balance risk and return in your portfolio (e.g., balancing high risk project with low risk projects) • Note: Projects 7 and 8 are mutually exclusive • You cannot invest in a fraction of a project. All projects are replicable i.e., you have the option to re-invest in the same project again with the same cashflow stream. K 10% Calculate NPV, IRR, and Payback of all 8 projects Answer in space below: Clearly state your investment objectives. E.g., get invested money back as carly as possible; maximize firm's value with new projects; avoid potential losses etc. Answer in space below (max 50 Words): List of Projects for your portfolio - explain how your portfolio will meet your stated investment objectives Answer in space below (max 50 Words) EXHIBIT 1 | Projects' Free Cash Flows (dollars in thousands) Project number: Initial Investment 2. 3 4 5 7. 8. $(2,000) $(2,000) S(2,000) s(2,000) s(2,000) $(2,000) $(2,000) $(2,000) Year $330 330 330 330 330 330 $1,666 334 165 $ 160 $ 280 280 $ (350) (60) $2,200* $1,200 900 300 90 70 200 350 3. 280 280 60 395 432 350 700 1,200 $2,250 280 280 280 280 280 280 440 442 444 446 448 450 451 451 452 $10,000 $(2.000) 330* $1,000 10 11 280 12 280 280 280 $ 280 13 14 15 Sum of cash flow benefits Excess of cash flow over initial investmant $1,310 $3,310 $2,165 $10,000 $ 3,561 $4.200 $2,200 $2,560 $4,150 $165 $ 8,000 $1,561 $2,200 $ 200 $ 560 $2.150 "Indicatos year in which payback was acoomplished. You are given $10,000 capital budget and your firm has shortlisted eight potential investment projects (see attached case) for you to construct a portfolio. The constraints and requirements are as follows: • State your investment objective clearly on how to balance risk and return in your portfolio (e.g., balancing high risk project with low risk projects) • Note: Projects 7 and 8 are mutually exclusive • You cannot invest in a fraction of a project. All projects are replicable i.e., you have the option to re-invest in the same project again with the same cashflow stream. K 10% Calculate NPV, IRR, and Payback of all 8 projects Answer in space below: Clearly state your investment objectives. E.g., get invested money back as carly as possible; maximize firm's value with new projects; avoid potential losses etc. Answer in space below (max 50 Words): List of Projects for your portfolio - explain how your portfolio will meet your stated investment objectives Answer in space below (max 50 Words) EXHIBIT 1 | Projects' Free Cash Flows (dollars in thousands) Project number: Initial Investment 2. 3 4 5 7. 8. $(2,000) $(2,000) S(2,000) s(2,000) s(2,000) $(2,000) $(2,000) $(2,000) Year $330 330 330 330 330 330 $1,666 334 165 $ 160 $ 280 280 $ (350) (60) $2,200* $1,200 900 300 90 70 200 350 3. 280 280 60 395 432 350 700 1,200 $2,250 280 280 280 280 280 280 440 442 444 446 448 450 451 451 452 $10,000 $(2.000) 330* $1,000 10 11 280 12 280 280 280 $ 280 13 14 15 Sum of cash flow benefits Excess of cash flow over initial investmant $1,310 $3,310 $2,165 $10,000 $ 3,561 $4.200 $2,200 $2,560 $4,150 $165 $ 8,000 $1,561 $2,200 $ 200 $ 560 $2.150 "Indicatos year in which payback was acoomplished.