1 2 3 Why would you consider Net Present Value (NPV) over net profit as one...
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1 2 3 Why would you consider Net Present Value (NPV) over net profit as one of the primary methods for projecting financial viability of a project? ( Given a discount rate of 8% in Table 2 below; calculate the Net Present Value (NPV) for projects 1 and 2. Use the cash flow in Table 1 above. Please show all your calculations. Criteria A B C D Year Weighted project score 1 2 3 4 Assuming the management of Car Trace has many criteria that are necessary for them to make decision on project selection. Using the information in table 3, calculate the weighted scoring for the project and use the result to support your decision in question 3.3. 8% Discount rate Weight 20% 35% 40% 10% 0.9259 0.8573 0.7938 0.7350 Project 1 50 70 40 90 Table 3: Weighted scoring Project 2 45 30 50 60 1 2 3 Why would you consider Net Present Value (NPV) over net profit as one of the primary methods for projecting financial viability of a project? ( Given a discount rate of 8% in Table 2 below; calculate the Net Present Value (NPV) for projects 1 and 2. Use the cash flow in Table 1 above. Please show all your calculations. Criteria A B C D Year Weighted project score 1 2 3 4 Assuming the management of Car Trace has many criteria that are necessary for them to make decision on project selection. Using the information in table 3, calculate the weighted scoring for the project and use the result to support your decision in question 3.3. 8% Discount rate Weight 20% 35% 40% 10% 0.9259 0.8573 0.7938 0.7350 Project 1 50 70 40 90 Table 3: Weighted scoring Project 2 45 30 50 60
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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