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1 . Two new software projects are proposed to a young, start - up company. The Alpha project will cost $ 1 5 0 ,

1.Two new software projects are proposed to a young, start-up company. The Alpha project will
cost $150,000 to develop and is expected to have an annual net cash flow of $40,000. The Beta
project will cost $200,000 to develop and is expected to have an annual net cash flow of
$50,000. The company is very concerned about their cash flow. Using the payback period, which
project is better from a cash flow standpoint? Why?
2. A five-year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and
$15,000 in the next five years. It will cost $50,000 to implement the project. If the required rate
of return is 20 per cent, conduct a discounted cash flow calculation to determine the NPV.
3. Create a weighted scoring model to determine grades for a course. Final grades are based on
three exams worth 15 percent, 20 percent, and 25 percent, respectively; homework is worth 20
percent; and a group project is worth 20 percent. Enter scores for three students. Assume
student 1 earns 100 percent (or 100) on every item. Assume Student 2 earns 80 per cent on
each of the exams, 90 per cent on the homework, and 95 per cent on the group project. Assume
Student 3 earns 90 per cent on Exam 1,75 per cent on Exam 2,80 per cent on Exam 3,90 per
cent on the homework, and 70 per cent on the group project. You can use the weighted scoring
model template, create your own spreadsheet, or make the matrix by hand.

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