Question: Problem 1 - (problem 2-1): Two Internet site projects are proposed to a young start-up company. Project A will cost $250,000 to implement and expected

Problem 1 - (problem 2-1): Two Internet site
Problem 1 - (problem 2-1): Two Internet site projects are proposed to a young start-up company. Project A will cost $250,000 to implement and expected to generate annual cash flow of $75,000. Project B will cost $150,000 to implement and expected to generate annual cash flow of $52,000. Using the payback period, which project is better from the cash flow stand point? Problem 2 - (problem 2-3): A four-year financial project has net cash flows of $20,000; $25,000; $30,000; and $50,000 in the next four years. It will cost $75,000 to implement the project. If the required rate of return is 0.2, conduct a discounted cash flow calculation to determine the NPV. Problem 3 - (problem 2-7): Use a weighted score model to choose between three methods (A,B,C) of financing the acquisition of a major competitor. The relative weights for each criterion are shown in the following table as are the scores for each location on each criterion. A score of 1 represents unfavorable, 2 satisfactory, and 3 favorable. Method Weight Category Consulting costs Acquisition time Disruption Cultural differences Skill redundancies Implementation risks Infrastructure NU N

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