Question: Exercise two [ 1 7 Marks ] 1 . Assume a project costs ( $ 1 , 2 0 0 , 0 0

Exercise two [17 Marks]1. Assume a project costs \(\$ 1,200,000\) to implement and has annual net cash inflows of \(\$ 345,000\) for a period of eight years, a required rate of return of 15 percent, and an inflation rate of 3 percent. Calculate its net present value (NPV).2. Assume a project costs \(\$ 225,000\) to implement and has annual net cash inflows of \(\$ 50,000\) for a period of eight years, a required rate of return of 11 percent, and an inflation rate of 3 percent. Calculate its net present value (NPV).3. Use the following data to answer the next five problems. a) Calculate the weighted score for Project A, B, C, and D?4. Project Boulder has a payback period of 2.4 years, an NPV of \(\$ 10,000\), and a profitability index of 1.10. Project Flintstone has a payback period of 3.0 years, an NPV of \(\$ 10,000\), and a profitability index of 1.05. If only one project can be executed, which project should be selected? Explain your reasoning. 5. Suppose that you have been assigned as the project manager to execute a project that was selected using the sacred cow project selection method. The project sponsor is an executive who has been with the company for three years. Based on past employment history, the average tenure of a senior executive at your company is 5 years. After reviewing the project's expectations and requirements, the project team has determined that the payback period will be 3.5 years. What are the implications for you and the project team?
Exercise two [ 1 7 Marks ] 1 . Assume a project

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