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DATA: After making sure that the cash-flow models for all scenarios are correct according to the solution provided for Homework-2, use the NCF After Tax

After making sure that the cash-flow models for all scenarios are correct according to the solution provided for Homework-2,

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(40 pts) Tables below show the cash-flow models for Scenarios 1, 2 and 3 , respectively. Sample Calculation for Depreciation:

After making sure that the cash-flow models for all scenarios are correct according to the solution provided for Homework-2, use the NCF After Tax (Column # 14) with an i* of 8% per year to; (a) Construct the NPV profile using 5% increments (0%, 5%, 8% (i*), 10% 15%, 20%, 25%, ...., 100% etc.) for all scenarios and show them on the same plot by indicating important points (b) Construct the cumulative NPV diagram for all scenarios on the same plot and indicate maximum capital at risk and dis- counted payback point (c) Calculate the following for all scenarios Net present value Rate of return Discounted profitability index (DPI) (d) Discuss the results by comparing all scenarios and recommend the one that seems to be best scenario

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