Question: Please help and show workings please: For the first part of this assignment, only quantitative considerations are relevant. No other project characteristics are deciding factors

Please help and show workings please:

For the first part of this assignment, only quantitative considerations are relevant. No other project characteristics are deciding factors in the selection, except that management has determined that projects 7 and 8 are mutually exclusive.

All projects require the same initial investment, $2,000,000. Moreover, all are believed to be of the same risk class. The weighted average cost of capital for the first part is 10%. To simulate your analysis, consider the following questions:

  1. Can you rank the projects simply by inspecting the cash flows shown in Exhibit I?
  2. What criteria might you use to rank the projects? Which quantitative ranking methods are better? Why?
  3. What is the ranking you found by using quantitative methods (please show all your calculations)? Does this ranking differ from the ranking obtained by a simple inspection of the cash flows? (5%)

What kinds of real investment projects have cash flows similar to those in the exhibit?

Please help and show workings please: For the first part of this

EXHIBITI Project 1 2,000.00 $ Project cash flows in (000) Project 2 Projects Project 4 2,000.00 $ 2,000.00 $ 2,000.00 $ Projects 2,000.00 $ Project 6 2,000.00 $ Project 2,000.00 $ Projects 2,000.00 $ Initial Investment Year $ 1 2 1,200.00 $ 900.00 $ 300.00 $ 90.00 $ 70.00 S $ $ $ $ $ $ 330.00 S 330.00 S 330.00 $ 330.00 $ 330.00 S 330.00 $ 330.00 S 1,000.00 $ $ $ 1,666.00 $ 334.00 $ 165.00 $ $ $ $ $ $ $ 5,000.00 $ (350.00 (60.00 60.00 350.00 700.00 1,200.00 2,250.00 2,200.00 $ S $ $ $ 4,000.00 $ $ $ $ $ S $ $ $ $ $ s $ $ $ $ $ $ $ $ 9,000.00 $ 160.00 $ 200.00 $ 350.00 $ 395.00 $ 432.00 $ 440.00 $ 442.00 $ 444.00 $ 446.00 $ 448.00 S 450.00 $ 451.00 $ 451.00 $ 452.00 $ (2,000.00 $ 280.00 s 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 $ 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 4 5 6 7 8 9 10 11 12 13 14 15 Sum of cash flow benefits Excess of cash flow Over investment 2,000.00 S S $ $ $ $ 3,310.00 $ 7,165.00$ 9,000.00 $ 3,561.00$ 4,200.00 $ 6,200.00 $ 4,560.00 $ 4,150.00 $ 1,310.00 $ 5,165.00 S 7,000.00 $ 1,562.00 $ 2,200.00 $ 4,200.00 $ 2,560.00 $ 2,150.00 Yellows/italics indicate year in which payback is accomplished

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