Answer all mutilple choice
Question 6 Suppose you're a financial analyst at a company, and you are recommending whether the company should invest in Project A or Project B. - Each of the two projects has been proposed by a lead engineer, but the company can only invest in creating one of them this year, and so your manager wants you to give her advice on which one to invest in. - The initial investment cost s \$3 million, and the opportunity cost is 9% (discount rate). - Here are the expected profits that you expect to earn over the next 5 years. - Here are the expected profits that you expect to earn over the next 5 years. - Project A starts with an initial investment to make a tech product, followed by a growing income stream, until the product becomes obsolete and is terminated. - Project B starts with an initial investment to make a different product, and makes no sales, but the whole product is expected to be sold in five years to some other company for a large payoff of $14 million. Using the table below, what is project A's discounted cash flow for Year 2? Hide answer choices ^ $1,834,862 $9,707,166.$3,366,720 $9,099,039. Question 7 Using the information from Question 6, calculate the sum of the discounted cash flows for Project A Hide answer choices ^ $6,707,166 $9,707,166. $3 million (D) $9,099,039. Using the information from Question 6, calculate the sum of the discounted cash flows for Project B? Hide answer choices ^ $9,099,039. $6,099,039 $9,707,166. $6,707,166 You are deciding between two project proposals to make a recommendation to your organization about which project to pursue. Project Proposal A has a payback period of 15 months, while Project Proposal B has a payback period of 20 months. Which project should you recommend? Hide answer choices ^ Project A Project B Pursue both projects Do not recommend either project (x) Question 5 You are on a project selection committee and were tasked with calculating the payback period of your final two options. You found that Project A has an initial investment of $10,000 and a payback period of 24 months, while Project B has an initial investment of $12,000 and a payback period of 18 months. Which project should you recommend? Hide answer choices A Project A, because the initial investment is smaller Project A, because the payback period is longer Project B, because the initial investment is larger Project B, because the payback period is shorter