EX$2-5($Algo$)$ You are the head of the project...

$2$

points

You are the head of the project selection team at SIMSOX. Your team is considering three different projects. Based on past history, SIMSOX expects at least a rate of return of $16$ percent.

Given the following information for each project, which one should be SIMSOX's first priority? Should SIMSOX fund any of the other projects? $($Use the NPV function in Excel to solve this problem. Negative amount should be indicated by a minus sign.$)$

Project: Dust Devils

$\backslash$table$[[$Year$,$Investment,Revenue Stream$],[0,490,000,0],[1,,34,000],[2,,315,000],[3,,415,000]]$

Project: Ospry

$\backslash$table$[[$Year$,$Investment,Revenue Stream$],[0,380,000,0],[1,,62,000],[2,,62,000],[3,,62,000],[4,,91,000]]$

Project: Voyagers

$\backslash$table$[[$Year$,$Investment,Revenue Stream$],[0,101,000,0],[1,,41,000],[2,,25,000],[3,,76,000],[4,,63,000],[5,,137,000]]$

$\backslash$table$[[],[$The NPV for Dust Devils is$],[$The NPV for Ospry is$],[$The NPV for Voyagers is$],[$How many projects should be funded?$]]$