calculations (ie., no need to explain every little detail on, for example, NPV calculations for Project X, just show that Project X's NPV is X) and incorporated tables. I would expect the memo to be no less than two full pages and no more than six pages. The goal is two-fold: proper calculations and recommendations AND the appropriate presentation and explanation of your recommendations. Ford Allen, CEO of the Amstelveen Corporation, has some major decisions to make. Seven division managers are clamoring for investment in projects totaling $34,000,000. Allen is working to fund them all, but currently only has $8,000,000 available for Amstelveen to invest. E Proposals (all amounts in thousands) Project A B C Initial Investment 1,000 2,000 5,000 Year 1 500 1,500 4,800 Year 2 1,000 1,000 1,000 6 Year 3 500 300 6,000 Year 4 1,000 500 -3,000 Year 5 1,500 200 -4,000 Annual cash flows D 8,000 2,000 2,000 8,000 2,000 2,500 5,000 2,000 3,000 5,000 1,000 3,000 10,000 3,000 2,000 1,500 2,000 3,000 3,000 1,500 1,200 400 Amstelveen's cost of capital is 6.5%, it uses a payback period cut-off of 2 years, and it calculates depreciation on a straight-line basis with the assumption of a zero salvage value. Allen has tasked you, an employee in the corporate controller's office, with several tasks. First, if there are no capital constraints, identify each project as advisable or inadvisable to pursue. Calculate this using the three methods of calculating capital budgeting that we covered in class (not ARR, we did not do any math with that method). If there are any contradictory recommendations (i.e., recommended under payback but not recommended under IRR), explain how this is possible and what you would recommend as the dominant criteria. Second, give the recommended total that you suggest Amstelveen raise, in addition to the $8,000,000 it already has, in order to invest in your recommended projects. Third, Allen wants a recommendation on which project(s) the company'should pursue if it remains limited to $8,000,000. Make sure to clearly explain the basis for your recommendation. Note: you cannot recommend abandoning Project C when it becomes negative in Year 4. Focus calculations (ie., no need to explain every little detail on, for example, NPV calculations for Project X, just show that Project X's NPV is X) and incorporated tables. I would expect the memo to be no less than two full pages and no more than six pages. The goal is two-fold: proper calculations and recommendations AND the appropriate presentation and explanation of your recommendations. Ford Allen, CEO of the Amstelveen Corporation, has some major decisions to make. Seven division managers are clamoring for investment in projects totaling $34,000,000. Allen is working to fund them all, but currently only has $8,000,000 available for Amstelveen to invest. E Proposals (all amounts in thousands) Project A B C Initial Investment 1,000 2,000 5,000 Year 1 500 1,500 4,800 Year 2 1,000 1,000 1,000 6 Year 3 500 300 6,000 Year 4 1,000 500 -3,000 Year 5 1,500 200 -4,000 Annual cash flows D 8,000 2,000 2,000 8,000 2,000 2,500 5,000 2,000 3,000 5,000 1,000 3,000 10,000 3,000 2,000 1,500 2,000 3,000 3,000 1,500 1,200 400 Amstelveen's cost of capital is 6.5%, it uses a payback period cut-off of 2 years, and it calculates depreciation on a straight-line basis with the assumption of a zero salvage value. Allen has tasked you, an employee in the corporate controller's office, with several tasks. First, if there are no capital constraints, identify each project as advisable or inadvisable to pursue. Calculate this using the three methods of calculating capital budgeting that we covered in class (not ARR, we did not do any math with that method). If there are any contradictory recommendations (i.e., recommended under payback but not recommended under IRR), explain how this is possible and what you would recommend as the dominant criteria. Second, give the recommended total that you suggest Amstelveen raise, in addition to the $8,000,000 it already has, in order to invest in your recommended projects. Third, Allen wants a recommendation on which project(s) the company'should pursue if it remains limited to $8,000,000. Make sure to clearly explain the basis for your recommendation. Note: you cannot recommend abandoning Project C when it becomes negative in Year 4. Focus