Project Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Initial Investment 2000000 2000000 2000000 2000000 2000000 2000000 2000000 2000000 Year 1 330000 1666000 0 160000 280000 2200000 1200000 350000 Year 2 330000 334000 0 200000 280000 900000 60000 Year 3 330000 165000 0 350000 280000 300000 60000 Year 4 330000 0 395000 280000 90000 350000 Year 5 330000 0 432000 280000 70000 700000 Year 6 330000 0 440000 280000 1200000 Year 7 330000 0 442000 280000 2250000 Year 8 1000000 0 444000 280000 Year 9 0 446000 280000 Year 10 0 448000 280000 Year 11 0 450000 280000 Year 12 0 451000 280000 Year 13 0 451000 280000 Year 14 0 452000 280000 Year 15 10000000 2000000 280000 Sum of cash flow Benefits 3310000 2165000 10000000 3561000 4200000 2200000 2560000 4150000 Excess of cash flow over initial investment 1310000 165000 8000000 1561000 2200000 200000 560000 2150000 Project Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Total life of investment 8 3 15 15 15 1 5 7 Payback 7 2 15 6 8 1 2 7 Average ROI 20 69 36 08 33 33 11 87 14 00 110 00 25 60 29 64 NPVs 0 1310000 165000 8000000 1561000 2200000 200000 560000 2150000 2 989247 4241 109846 8915 5430147 3 1252954 1 1597793 78 156862 7451 470766 4367 1637415 485 4 711368 2461 57409 25125 3552645 027 962034 5685 1113148 481 115384 6154 387112 9278 1194050 899 6 469598 2464 7494 105873 2172650 607 693382 3935 719429 7166 75471 69811 308554 5544 809433 3487 8 258371 004 40073 92166 1152417 05 448816 7634 396654 0326 37037 03704 234659 2322 474841 1592 10 73085 59005 85454 54545 393920 4937 228221 9512 129702 2618 0 165040 8877 182984 4106 11 11048 73637 107370 6285 90043 4665 126568 3667 13443 48125 18018 01802 131726 066 51131 01997 12 90077 1142 128793 504 173037 3874 30411 23488 92957 94295 35714 28571 99353 64253 72251 61142 14 234300 3483 170224 0365 599035 1793 146340 6269 280192 9641 70175 4386 37286 8409 296013 3096 16 362247 9486 209868 1783 920729 8602 303974 759 438872 2745 103448 2759 21439 21825 492646 3087 18 476157 7305 247837 8997 1164839 606 444457 9483 574358 2835 135593 2203 77076 95497 665831 6535 20 577916 6786 284236 1111 1350945 285 569675 4658 690867 6601 166666 6667 129854 6811 818696 9522 IRR 10 87 6 31 11 33 12 33 11 12 10 00 15 26 11 41 MIRR 10 49 8 41 11 33 10 65 10 46 10 00 11 76 11 18 Profitability index 1 037 0 957 1 197 1 114 1 065 1 000 1 083 1 091 EAC 13,699 46 (34,362 54) 51,790 22 30,005 20 17,052 45 0 00 43,537 37 37,586 00 I completed the first part of this question, I am needing assistance with the 2nd part Utilize various methods to determine the ranking of the projects based on the cash flows provided Be certain to use NPV and IRR calculations in your analysis Then, complete the same analysis with a higher discount rate using the same evaluation methods Why do the rankings become more stable and similar between the 2 methods with a higher discount rate Explain with example from your work

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Question: Project Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Initial Investment -2000000 -2000000 -2000000 -2000000 -2000000 -2000000

Project		Project 1	Project 2	Project 3	Project 4	Project 5	Project 6	Project 7	Project 8

Initial Investment		-2000000	-2000000	-2000000	-2000000	-2000000	-2000000	-2000000	-2000000
	Year 1	330000	1666000	0	160000	280000	2200000	1200000	-350000
	Year 2	330000	334000	0	200000	280000		900000	-60000
	Year 3	330000	165000	0	350000	280000		300000	60000
	Year 4	330000		0	395000	280000		90000	350000
	Year 5	330000		0	432000	280000		70000	700000
	Year 6	330000		0	440000	280000			1200000
	Year 7	330000		0	442000	280000			2250000
	Year 8	1000000		0	444000	280000
	Year 9			0	446000	280000
	Year 10			0	448000	280000
	Year 11			0	450000	280000
	Year 12			0	451000	280000
	Year 13			0	451000	280000
	Year 14			0	452000	280000
	Year 15			10000000	-2000000	280000

Sum of cash flow Benefits		3310000	2165000	10000000	3561000	4200000	2200000	2560000	4150000

Excess of cash flow over initial investment		1310000	165000	8000000	1561000	2200000	200000	560000	2150000



Project		Project 1	Project 2	Project 3	Project 4	Project 5	Project 6	Project 7	Project 8

Total life of investment		8	3	15	15	15	1	5	7

Payback		7	2	15	6	8	1	2	7

Average ROI		20.69%	36.08%	33.33%	11.87%	14.00%	110.00%	25.60%	29.64%

NPVs
0%		1310000	165000	8000000	1561000	2200000	200000	560000	2150000
2%		989247.4241	109846.8915	5430147.3	1252954.1	1597793.78	156862.7451	470766.4367	1637415.485
4%		711368.2461	57409.25125	3552645.027	962034.5685	1113148.481	115384.6154	387112.9278	1194050.899
6%		469598.2464	7494.105873	2172650.607	693382.3935	719429.7166	75471.69811	308554.5544	809433.3487
8%		258371.004	-40073.92166	1152417.05	448816.7634	396654.0326	37037.03704	234659.2322	474841.1592
10%		73085.59005	-85454.54545	393920.4937	228221.9512	129702.2618	0	165040.8877	182984.4106
11%		-11048.73637	-107370.6285	90043.4665	126568.3667	13443.48125	-18018.01802	131726.066	51131.01997
12%		-90077.1142	-128793.504	-173037.3874	30411.23488	-92957.94295	-35714.28571	99353.64253	-72251.61142
14%		-234300.3483	-170224.0365	-599035.1793	-146340.6269	-280192.9641	-70175.4386	37286.8409	-296013.3096
16%		-362247.9486	-209868.1783	-920729.8602	-303974.759	-438872.2745	-103448.2759	-21439.21825	-492646.3087
18%		-476157.7305	-247837.8997	-1164839.606	-444457.9483	-574358.2835	-135593.2203	-77076.95497	-665831.6535
20%		-577916.6786	-284236.1111	-1350945.285	-569675.4658	-690867.6601	-166666.6667	-129854.6811	-818696.9522

IRR		10.87%	6.31%	11.33%	12.33%	11.12%	10.00%	15.26%	11.41%


MIRR		10.49%	8.41%	11.33%	10.65%	10.46%	10.00%	11.76%	11.18%

Profitability index		1.037	0.957	1.197	1.114	1.065	1.000	1.083	1.091

EAC		13,699.46	(34,362.54)	51,790.22	30,005.20	17,052.45	0.00	43,537.37	37,586.00

I completed the first part of this question, I am needing assistance with the 2nd part:

Utilize various methods to determine the ranking of the projects based on the cash flows provided. Be certain to use NPV and IRR calculations in your analysis. Then, complete the same analysis with a higher discount rate using the same evaluation methods.

Why do the rankings become more stable and similar between the 2 methods with a higher discount rate? Explain with example from your work.

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