Question: Task: A. Given the following table with financial data on three projects, create MS Excel models to compute each of the following selection criteria for

Task: A. Given the following table with financial

Task: A. Given the following table with financial data on three projects, create MS Excel models to compute each of the following selection criteria for each project: 1) NPV (discounting rate 10%) 2) Discounted ROI RRR 20% 3) Discounted Payback Period (maximum 3 years) B. Based on your Excel computation results in (A) above, determine whether each project independently is feasible acceptable or not, according to each of the 3 criteria above. Each project must be accepted rejected on the basis of each criterion considered separately. I.e. each project will have THREE accept/reject decisions C. If only ONE of the three projects should be selected, which project would you recommend, and why? D. Explain why there are differences and discrepancies in the recommendations of the three selection criteria Facts: The following table provides data about three projects scheduled to be completed in five years. The cash flows are in thousands of Dirhams and occur at the end of each year. 0.83 0.75 0.68 Year 2 Year 3 Year 4 Total 0.62 Year 5 600 200 150 250 300 900 200 Present value factor (PVF) 0.91 Projects: Cost Benefits Year 1 Costs 100 Project 1 Benefits 0 250 Project 2 Benefits 150 Costs 350 Project 3 Benefits 250 400 Costs 250 100 300 350 400 1,400 1,700 1,250 1,550 1,550 1,900 300 400 300 300 300 300 300 250 600 500 300

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!