com/courses/1933153/assignments/10737240 Maps Due Friday by 11:59pm Points 10 Submitting a file upload Available Aug 24 at 8am - Sep 12 at 11:59pm 20 days The link below will down load a problem related to the NPV project selection method. After reading through the project use Excel to set the problem up like the ones in the Reading Numerical Selection Methods: A Short Primer and perform the necessary calculation. Then answer the questions at the end of the problem. Upload your answers in Excel back to Canvas by 11:59pm on Sept. 11 NPV Project Selection Problem.xlsx Project Selection! Pts are: . A B C D E F 1. A company has three new project ideas that are all expected to last 4 years. Unfortunately due to a resource constraint they can only pursue 2 of these projects. Assume the development costs for all projects are paid up front (ie. prior to the start of the project). The specific financial projections for the three projects 1 Project 1 - Development cost would be $50,000. Projected revenues from the project are $50,000 in 2 the first year with an expected annual growth of 10% each of the next 3 years. Project 2 - Development cost would be $100.000. Projected revenues from the project are expected to 3 be a constant $72,000 for all 4 years. Product 3 - Development cost would be $150,000. Projected revenues are $100,000 in the first year 4 with an expected decline of 10% each of the next 3 years. If the company uses a 7.5% hurdle rate and estimates inflation at 1% annually what is each project's NPV? (In addition to the total NPV for each project You MUST show your calculations & annual NPV values 5 for each project) 6 7 Project 1 8 YEAR NetFlow 9 -$50,000.00 10 year 1 $50,000.00 11 $55,000.00 12 Year 3 $60,500.00 year 0 year 2 Problem One D Year 3 Year 4 B $60,500.00 $66,550.00 12 13 14 15 16 17 18 Project 2 YEAR year 0 year 1 year 2 NetFlow $100,000.00 $72,000.00 $72,000.00 $72,000.00 $72,000.00 Year 3 Year 4 19 20 21 22 23 24 25 26 27 28 29 30 31 Project 3 YEAR year o year 1 year 2 NetFlow - 150,000.00 100,000.00 90,000.00 81,000.00 72,900.00 Year 3 Year 4 Problem One Ready 0 e Search the web and Windows