CAPITAL BUDGETING ANALYSIS Recap of Each Project's Net Cash Flows and Net Present Value (NPV) From Your Calculations \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Yoar Number } & \multicolumn{5}{|c|}{ Cash Flows At End of Year } & \\ \hline & 0 & 1 & 2 & 3 & 4 & \\ \hline YEAR & 2022 & 2023 & 2024 & 2025 & 2026 & NPV \\ \hline CAPITAL PROJECT \#1 & $1,461,200 & $421,100 & $484,300 & $650,300 & $819,500 & $0 \\ \hline CAPITAL PROJECT \#2 & $1,263,900 & $244,900 & $328,300 & $435,900 & $513,500 & $0 \\ \hline CAPITAL PROJECT \#3 & $1,581,500 & $489,300 & $496,700 & $451,100 & $1,123,100 & $0 \\ \hline CAPITAL PROJECT \#4 & $1,593,800 & $416,900 & $455,500 & 5695,100 & $1,106,400 & $0 \\ \hline \end{tabular} Part 1): Identify all project combinations that are ACCEPTABLE for Global Manufacturing based on the NPV acceptance criterion. (You may not need all the spaces provided.) \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{5}{|c|}{ Cumulative Project Cash Flows At End of Year } & \multirow[b]{2}{*}{\begin{tabular}{c} NET \\ PRESENT \\ VALUE (NPV) \\ \end{tabular}} \\ \hline & Project Cost 2022 & 2023 & 2024 & 2025 & 2026 & \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline \end{tabular} Part 2): Since Global's management has imposes a Capital Budget Constraint (called Capital Rationing) you must now select those project combinations from Part (1) that DO NOT cost more than the Capital Budget Constraint shown below. (You may not need all the spaces provided.) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Capital Budget Constraint =} & \multicolumn{2}{|l|}{$3,964,900.00} & & & & \\ \hline & \multicolumn{5}{|c|}{ Cumulative Project Cash Flows At End of Year } & \\ \hline & \begin{tabular}{c} Project Cost 2022 \\ Cannot Exceed \\ $3,964,900 \\ \end{tabular} & 2023 & 2024 & 2025 & 2026 & \begin{tabular}{l} NET PRESENT \\ VALUE (NPV) \end{tabular} \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline \end{tabular} Part 3): Which ONE of these AFFORDABLE project combinations identified in Part (2) above will MAXIMIZE the corporate value of Global Manufacturing? \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{\begin{tabular}{l} SINGLE AFFORDABLE PROJECT COMBINATION \\ THAT WILL MAXIMIZE CORPORATE VALUE \end{tabular}} & \multicolumn{5}{|c|}{ Cumulative Project Cash Flows At End of Year } & \multirow[b]{2}{*}{\begin{tabular}{c} NET \\ PRESENT \\ VALUE (NPV) \\ \end{tabular}} \\ \hline & \begin{tabular}{c} Project Cost 2022 \\ Cannot Exceed \\ $3,964,900 \\ \end{tabular} & 2023 & 2024 & 2025 & 2026 & \\ \hline & $0 & $0 & $0 & $0 & $0 & $0 \\ \hline \end{tabular} Part 4): If this maximizing project combination selected Part (3) were implemented how much could the firm expect its corporate value to increase? \begin{tabular}{|l|l|} \hline Expected Increase in Corporate Value (\$) = & $0 \\ \hline \end{tabular}