Chapter 2 - Homework Question1: Discounted Cash Flow (NPV) & Profitability Index (PI). a. The PM has to decide whether a five-year financial project shall be accepted or rejected? The project has net cash flows of $40,000, $50,000, $60,000, $70,000, $80,000 in the next five years. It will cost $150,000 to implement the project. If the hurdle rate is 20 percent, conduct a discounted cash flow calculation to determine the NPV to be the basis of your decision. Ipus Years Cash Flows 0 (S150,000 1 $40,000 2 $50,000 3 S60,000 $70,000 5 $80,000 Total NPV b. Based on the NPV determined in Question 1.a, should the project be accepted or rejected using profitability index? Question2: Weighted Scoring (with cut-off percentage) Evaluate the following project proposals using the weighted scoring model, knowing that the organization's cut-off percentage for accepting project proposals is 70%. Note: the scale used for scoring is 1-4. Proposal Criteria Cost Schedule Scope Risk assessment (40%) (30%) (20%) (10%) A 2 3 3 3 B 4 4 3 4 1 2 1 4 D