Case Study You have been asked to make a recommendation on which projects the Acme Development Co should plan to complete this year based on NPV analysis and available labor hours Assumptions: Each project concept below has a 3 year life Use a discount rate of 12% cost of capital Use a labor rate for the developer hours of $52 per hour Acme has 10,000 software development labor hours to put towards these projects PROJECT CONCEPT DETAILS Project Project Name 1st Yr. Revenue Estimated developer hours Revenue for each of 2 subsequent years 1 1.250 $750,000 Decline 10% 2 St Michael Dragonslayer Game Receipt Organizer Movie Attendance Tracker 400 Increase 5% 3 750 Increase 5% 4 Tax Adviser $250,000 $500,000 $1,000,000 $2.500.000 $1,300,000 2.500 1.875 Increase 10% 5 Recipe Organizer Increase 15% Game Score Tracker 6,250 Increase 5% Questions 1 Calculate the NPV for each of these 6 project options based on their 3 year expected lives 2 Based on these calculated NPVs, and the constraint of 10.000 development hours to invest, which projects would you recommend (and in what order) that Acme do this year? Submit the answers in an MS Excel file showing your work in calculating the NPVS Hint. It is acceptable to use Excel supplied templates However, you are still required to submit an accurate analysis. In the past there have been situations in which students mistakenly assumed Microsoft would automatically provide them with the correct answer Tools can be helpful but you are still in charge of the process and results