Question: please solve in 50 mins i will give you thumb up b) An engineering organisation has the opportunity to invest in three different projects, A,

please solve in 50 mins i will give you thumb up

please solve in 50 mins i will give you thumb up

please solve in 50 mins i will give you thumb up

b) An engineering organisation has the opportunity to invest in three different projects, A, B and C, which have the following estimated cash flows: ii) Year 0 1 2 3 4 Investment Capital & Forecast Cash Flows Project A Project B Project C (500,000) (500,000) (500,000) 175,000 100,000 100,000 175,000 125,000 100,000 175,000 175,000 100,000 175,000 200,000 500,000 If the organisation has a cost of capital (discount rate) of 10%, calculate the net present value of each project. (See Appendix Q4 for discounting table) (6 marks) The organisation can invest in only one project. As a project engineer, what advice would you offer and why? (4 marks) Appendix Q4 Table II Discounted Rates (r)% Periods (n) 1 2 3 4 5 6 7 8 9 10 11 Present Value Factors: Present Value of 1 (1+r)" 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1% 2% 4% 6% 26% 28% 30% 0.794 0.781 0.769 0.630 0.561 0.592 0.500 0.640 0.455 0.397 0.610 0.350 0.315 0.621 0.269 0.250 0.617 0.207 0.134 0.125 0.618 0.094 0.099 0.618 0.073 0.079 0.618 0.056 10% 12% 15% 16% 18% 20% 22% 25% 0.990 0.980 0.962 0.943 0.909 0.893 0.870 0.862 0.847 0.833 0.820 0.800 0.980 0.961 0.925 0.890 0.826 0.797 0.756 0.743 0.718 0.694 0.672 0.640 0.971 0.942 0.889 0.840 0.751 0.712 0.658 0.641 0.609 0.579 0.551 0.512 0.961 0.924 0.855 0.792 0.683 0.636 0.572 0.552 0.516 0.482 0.451 0.410 0.951 0.906 0.822 0.747 0.621 0.567 0.497 0.476 0.437 0.402 0.370 0.328 0.942 0.888 0.790 0.705 0.564 0.507 0.432 0.410 0.370 0.335 0.303 0.262 0.933 0.871 0.760 0.665 0.513 0.452 0.376 0.354 0.314 0.279 0.249 0.210 0.198 0.619 0.159 0.923 0.853 0.731 0.627 0.467 0.404 0.327 0.305 0.266 0.233 0.204 0.168 0.157 0.618 0.123 0.914 0.837 0.703 0.592 0.424 0.361 0.284 0.263 0.225 0.194 0.167 0.905 0.820 0.676 0.558 0.386 0.322 0.247 0.227 0.191 0.162 0.137 0.107 0.896 0.804 0.650 0.527 0.350 0.287 0.215 0.195 0.162 0.135 0.112 0.086 0.625 0.497 0.319 0.257 0.187 0.168 0.137 0.112 0.092 0.069 0.601 0.469 0.290 0.229 0.163 0.145 0.116 0.093 0.075 0.055 0.050 0.618 0.033 0.577 0.263 0.205 0.141 0.125 0.099 0.078 0.062 0.044 0.039 0.618 0.025 0.123 0.108 0.084 0.065 0.051 0.035 0.031 0.618 0.020 0.534 0.107 0.093 0.071 0.054 0.042 0.844 0.714 0.513 0.371 0.198 0.146 0.093 0.080 0.060 0.045 0.034 0.836 0.700 0.494 0.350 0.180 0.130 0.081 0.069 0.051 0.038 0.028 0.018 0.016 0.618 0.009 0.828 0.686 0.475 0.331 0.164 0.116 0.070 0.060 0.043 0.031 0.023 0.014 0.012 0.618 0.007 0.820 0.673 0.456 0.312 0.149 0.104 0.061 0.051 0.037 0.026 0.019 0.012 0.010 0.618 0.005 0.811 0.660 0.439 0.294 0.135 0.093 0.053 0.044 0.031 0.022 0.015 0.009 0.008 0.618 0.004 0.803 0.647 0.422 0.278 0.123 0.083 0.046 0.038 0.026 0.006 0.618 0.003 0.795 0.634 0.406 0.262 0.112 0.074 0.040 0.033 0.022 0.788 0.622 0.390 0.887 0.788 0.062 0.618 0.043 0.879 0.773 0.870 0.758 0.442 0.861 0.743 0.555 0.417 0.239 0.183 0.853 0.728 0.394 0.218 0.163 0.028 0.025 0.618 0.015 0.023 0.020 0.618 0.012 0.005 0.618 0.002 0.018 0.013 0.007 0.015 0.010 0.006 0.013 0.008 0.005 0.004 0.618 0.002 0.010 0.007 0.004 0.003 0.618 0.001 0.247 0.102 0.066 0.035 0.028 0.019 0.780 0.610 0.375 0.233 0.092 0.059 0.030 0.024 0.016

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