Answer the following. Include your responses in this document.

Would you accept the Denver project if it was a standalone project, not dependent upon any other project?

Circle one of the following: YES NO

Specifically, why? Include references and comparisons to the 7 /Tools.

Would you accept the Minneapolis project if it was a standalone project, not dependent upon any other project?

Circle one of the following: YES NO

Specifically, why? Include references and comparisons to the 7 /Tools.

Would you accept the Kansas City project if it was a standalone project, not dependent upon any other project?

Circle one of the following: YES NO

Specifically, why? Include references and comparisons to the 7 /Tools.

Given the calculated results of the three potential projects, which project (if any) would you undertake?

Circle the one you would accept if mutually exclusive DENVER MINNEAPOLIS KANSAS CITY

Why? Include references and comparisons to the 7 /Tools.

Blue Hawk Industries creates specialized running shoes. Through the unique, patented design, these shoes have been tested and proven to allow the person wearing them to run faster and jump higher. Currently, the company operates out of its only location in Dickinson, North Dakota. High demand has suggested the company expand its operations to additional locations. Management is contemplating three mutually exclusive projects to expand the business. Accounting staff has suggested and researched three possible cities for expansion: Denver, Minneapolis, and Kansas City. Management expects an 8 percent return and a 4-year payback period. Denver Replace this with your name Required Rate of Return Required Payback Period Years \begin{tabular}{|r|r|r|r|r|} \hline Year & UndiscountedFCF & PVIF & Discounted FCF & CumulativeDiscountedFCF \\ \hline 0 & & & & \\ \hline 1 & & & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & \\ \hline \end{tabular} 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index Kansas City Required Rate of Return Required Payback Period \begin{tabular}{|r|l|} \hline \multicolumn{2}{|c|}{ Replace this with your name } \\ \hline 8.00% & \\ \hline 4.00 & Years \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|r|} \hline Year & UndiscountedFCF & PVIF & Discounted FCF & CumulativeDiscountedFCF \\ \hline 0 & & & & \\ \hline 1 & & & \\ \hline 2 & & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & & \\ \hline \end{tabular} 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index Minneapolis Replace this with your name Required Rate of Return Required Payback Period Years \begin{tabular}{r|r|r|r|r} \hline Year & UndiscountedFCF & PVIF & Discounted FCF & CumulativeDiscountedFCF \\ \hline 0 & & & & \\ \hline 1 & & & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & & \\ \hline \end{tabular} 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index Blue Hawk Industries creates specialized running shoes. Through the unique, patented design, these shoes have been tested and proven to allow the person wearing them to run faster and jump higher. Currently, the company operates out of its only location in Dickinson, North Dakota. High demand has suggested the company expand its operations to additional locations. Management is contemplating three mutually exclusive projects to expand the business. Accounting staff has suggested and researched three possible cities for expansion: Denver, Minneapolis, and Kansas City. Management expects an 8 percent return and a 4-year payback period. Denver Replace this with your name Required Rate of Return Required Payback Period Years \begin{tabular}{|r|r|r|r|r|} \hline Year & UndiscountedFCF & PVIF & Discounted FCF & CumulativeDiscountedFCF \\ \hline 0 & & & & \\ \hline 1 & & & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & \\ \hline \end{tabular} 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index Kansas City Required Rate of Return Required Payback Period \begin{tabular}{|r|l|} \hline \multicolumn{2}{|c|}{ Replace this with your name } \\ \hline 8.00% & \\ \hline 4.00 & Years \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|r|} \hline Year & UndiscountedFCF & PVIF & Discounted FCF & CumulativeDiscountedFCF \\ \hline 0 & & & & \\ \hline 1 & & & \\ \hline 2 & & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & & \\ \hline \end{tabular} 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index Minneapolis Replace this with your name Required Rate of Return Required Payback Period Years \begin{tabular}{r|r|r|r|r} \hline Year & UndiscountedFCF & PVIF & Discounted FCF & CumulativeDiscountedFCF \\ \hline 0 & & & & \\ \hline 1 & & & \\ \hline 2 & & & \\ \hline 3 & & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & & \\ \hline \end{tabular} 7 Tools 1. Net Present Value 2. Payback Period 3. Discounted Payback Period 4. Average Accounting Return 5. Internal Rate of Return 6. Modified Internal Rate of Return 7. Profitability Index