Question: Task 4- 3.3 assess the viability of a project using investment appraisal techniques Mercantile Plc is looking at a number of projects it would like

Task 4- 3.3 assess the viability of a project using investment

Task 4- 3.3 assess the viability of a project using investment appraisal techniques Mercantile Plc is looking at a number of projects it would like to invest in. it has decided to narrow it down to two projects: Fiesta and Siesta. The details for the projects are as follows: Duration (Years) Fiesta (10 000 000 2 800 000 3 000 000 3 200 000 3 500 000 2 Siesta (10 000 000 | 3 200 000 3 200 000 3 200 000 3 200 000 3 200 000 Required: Compare the projects using the following methods: a. Payback b. Discounted payback (12%) c. NPV (12%) d. IRR e. If the company has money for one project only which one would you choose and why? Give reasons for your answer. f. If the company only accepts projects with an RRR of 15% or more should they accept any of these projects? Give reasons for your answer. g. Complete the following table- | Uno Dos Comments Methode Paybacke Discounted payback (12%) NPV (12% IRR

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