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Dannerly Press Questions Your group's objective is to select the best possible set of projects for the firm. Be specific in your recommendations and provide
Dannerly Press Questions Your group's objective is to select the best possible set of projects for the firm. Be specific in your recommendations and provide all necessary supporting calculations. Analysis Components -Calculating the cost and NPV for each mutually exclusive phone book project *White pages in Philadelphia with no yellow pages *White pages in Philadelphia with yellow pages in Atlanta *White pages in Atlanta *White pages and yellow pages in Atlanta *Also, when considering both in Atlanta, also consider the relative benefits of 350 now vs 200 now and 200 later to find the best option -Calculate the cost and NPV for the Financial Magazine *Calculate the NPV for 3, 4 and 5 year replacement cycles *Remembering the replacement cycle is only 9 years, find the combination of 3, 4 and 5 year presses that have the least negative present value(since they are a cost) yet provide printing for at least 9 years. *Don't forget land cost and land liquidation, building, depreciation etc. -Now list the projects, costs, NPV and PI, in order of highest to lowest PI. *Determine what projects would be taken if there were no rationing *Determine the projects that fit under the capital budget It is important that you put yourself into the case's situation and role when developing a solution. It is not uncommon that the best solution given how reality acutally occurred is a bad solution ex ante. The case is graded on the ex ante context as is consistent with Finance. 1) What is the highest NPV among the white pages phone book projects? 2) Does printing the yellow pages in Atlanta add value? Does having the option to do so change your answer to 1)? 3) What is the best replacement cycle for the financial magazine? 4) What is the NPV of the magazine project
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