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After making sure that the cash-flow models of both alternatives are correct according to the solution provided for Problem Set-3; 1. Construct the NPV profile

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After making sure that the cash-flow models of both alternatives are correct according to the solution provided for Problem Set-3; 1. Construct the NPV profile using 5% increments for both alternatives (6 pts) 2. Calculate the following for both alternatives (6 pts): Rate of return Payout time (undiscounted) Net present value (using i* of 10% per year) Discounted profitability index Profit-to-Investment ratio VC using DPI hurdle rate of 1.3 3. Discuss the results by comparing both alternatives with respect to the NPV profile and other indicators calculated (6 pts). Recommend the one that seems to be more feasible (2 pts). Note: You can submit your work as an organized MS Excel Sheet. Include the discussion as a text box. After making sure that the cash-flow models of both alternatives are correct according to the solution provided for Problem Set-3; 1. Construct the NPV profile using 5% increments for both alternatives (6 pts) 2. Calculate the following for both alternatives (6 pts): Rate of return Payout time (undiscounted) Net present value (using i* of 10% per year) Discounted profitability index Profit-to-Investment ratio VC using DPI hurdle rate of 1.3 3. Discuss the results by comparing both alternatives with respect to the NPV profile and other indicators calculated (6 pts). Recommend the one that seems to be more feasible (2 pts). Note: You can submit your work as an organized MS Excel Sheet. Include the discussion as a text box

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