Project Management (1503431)/Spring 2021-2022 Assignment No 1: Using Project Selection Tools to Select Projects Due Date: Thursday 03/02/2022 (assigned 26/01/2022) Total Raw Points: 30 Objectives (Outcome #3): This assignment is designed to re-enforce your knowledge and skills in using project selection techniques, including computerized tools, such as MS Excel. This is an individual assignment and collaborations of any kind will not be tolerated, and will be investigated and penalized as necessary. Task: A. Given the following table with cash flows (in thousands of dollars) for three projects, build an Excel model to compute and find each of the following selection criteria for each project: 1) NPV 2) IRR 3) ROI (discounting approach) 4) Payback period (discounting approach, whole number/year) B. Based on your calculation results in (A) above, determine whether each project, considered independently, is feasible/acceptable or not, using each of the following decision rules: a. NPV: only positive values are accepted b. IRR: Cost of capital is 6% c. ROI: RRR = 10% d. Payback: maximum 3 years e. Create a table as below to summarize your answer to Part B: Projects: NPV Decision Rule IRR Decision Rule ROI Decision Rule PBP Decision Rule Project 1 Accept/Reject Accept/Reject Accept/Reject Accept/Reject Project 2 Accept/Reject Accept/Reject Accept/Reject Accept/Reject Project 3 Accept/Reject Accept/Reject Accept/Reject Accept/Reject C. Based on your results in parts (A) and (B) above, rank the three projects from 1 to 3 according to their financial desirability (i.e. #1 best, #2 second best, etc.) Table 1: Cash Flows (Note: cash flows occur at the end of each year) Projects: Cost/Benefits Year 1 Year 2 Year 3 Year 4 Total Gross Benefits PVF: 0.94 0.89 0.84 0.79 Project 1 Benefits 3,000 4,000 5,000 6,000 18,000 2,000 Costs 4,000 6,000 5,000 1,000 16,000 Project 2 Benefits 3,000 5,000 6,000 6,000 20,000 2,000 Costs 4,000 4,000 5,000 5,000 18,000 Project 3 Benefits 2,000 5,000 7,000 7,000 21,000 2,000 Costs 3,000 6,000 5,000 5,000 19,000 Notes: 1. Since cash flows occur at the end of the year, payback must be a whole number, with no fraction. 2. Your solution must include the Excel Model in Part (A), the decision table in Part (B), and the answer to Part (C).