Question: Need help getting a start on this. Lesson 4 Individual Assignment: Economic Measures for Project Selection Type your answers in a Microsoft Word document For
Need help getting a start on this.
Lesson 4 Individual Assignment: Economic Measures for Project Selection Type your answers in a Microsoft Word document For each of the following, please identify which project should be selected. Fully explain why you would choose either Project A or Project B 1. Net Present Value (NPV 2. Internal Rate of Return (IRR) 3. Payback Period 4. Benefit-Cost Ratio Project A $167,000 14.5% 12 Months Project HB S152,000 15.4% 17 Months 3:2 Please answer the following NPV questions: 5. Your company has three projects from which to choose. Project A will take two years to complete and has an NPV of $1,885,000. Project B will take two years to complete and has a NPV of $2,105,000. Project B will take two years to complete and has a NPV of $4,105,000. Which project is the better invention? Please explain your answer. 6. Your college has two projects from which to choose. Project A will take six years to complete and has an NPV of S85,000. Project B will take three years to complete and has a NPV or $105,000. Which one is a better investment? Please explain your answer. Calculate the following Future Value / Present Value questions. Assuming you have to borrow S250,000 for each of the following projects. What is the present value of each of the project and which would you invest in? Please explain 7, Project A 8. Proiect B Years 5 Years 8 Years Interest Rate 10% 7% Please answer the following questions 9. Project A has a 2/2-year payback period. Project B has a 4/2-year payback period. Which project would you invest in? Please explain 10. Project A has an IRR of 4.5%. Project B has an IRR of 5.5%. The average interest rate from banks is 6%. Which project would you invest in? Please explain
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