Evaluate the 10 projects given by NPV, IRR, PI and Discounted Payback methods. Identify if they are acceptable or should be rejected. Finally, rank each method appropriately. You should use a hurdle rate of 19% and utilize 5 years as maximum payback years. Verify you have entered these factors into the appropriate box in the model so the results will calculate accurately for you. Remember you should only rank ACCEPTABLE projects--ranking unacceptable projects is incorrect and a deduction in your score. If a Payback project never pays off, you may simply indicate "Never" in the documentation grid; otherwise the model will indicate the payback results. Using the results of your above analysis, various information elements will feed the problem section dealing with capital rationing. Finish the problem by identifying which projects should be done by management with the given capital budget of $160,000,000 1 Project Year Project Cash Flow Capital Budgeting Evaluation Methods Orcounted Discounted Payback Cash Flow Payback Years 2 Minimum Payback Yrs Acceptor Reject 1 2 4 5 6 7 3 4 PVIFS 1.0000 0.8403 0.7062 0.5934 0.4987 0.4190 0.3521 0.2959 0.2487 0.2090 0.1756 S 9 10 6 7 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 5 Accept 5 Accept 5 Accept 5 Accept 5 Accept 5 Reject 5 Reject 5 Reject 5 Reject 5 Reject 9 10 12 13 14 15 Payback Yes 16 Total Outflows Total inflows Net Present Value 17 00. Hurdle rate 19.00% 18 19 20 IRR WNUMI Profit Index #DIV/01 Year 0 1 2 3 21 22 23 24 25 26 27 28 29 30 31 32 Project 1 (32,000,000) 5,000,000 6,000,000 8,000,000 10,000,000 16,000,000 18,000,000 6,000,000 2,000,000 800,000 400,000 Project 2 19,200,000) (150,000) 700,000 1,100,000 2,500,000 2,700,000 2,700,000 1,900,000 900,000 130,000 84,000 Project 3 (1,500,000) (150,000) (100,000) (50,000) 500,000 770,000 790,000 490,000 530,000 700,000 900,000 Project 4 [96,000,000) 5,000,000 10,000,000 59,900,000 45,000,000 24,000,000 24,000,000 18,000,000 14,000,000 16,000,000 14,000,000 Projects 175,000,000) 12,500,000 13,900,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 Project 6 (30,000,000) 2,000,000 5,000,000 7,000,000 9,000,000 12,000,000 16,000,000 20,000,000 22,000,000 24,000,000 10,000,000 Project (14.800,000) 1.000.000 800,000 600,000 400,000 200,000 5,000,000 9,000,000 5,000,000 7,000,000 8,550,000 Project 8 (17,000,000) 2,000,000 3,500,000 3,600,000 2,800,000 2,640,000 2,580,000 2,000,000 8,000,000 12,000,000 18,000,000 Project 9 (28,000,000) 6,250,000 6,250,000 6,250,000 6,250,000 6,250,000 5,950,000 5,950,000 5,950,000 5,950,000 5,950,000 Project 10 (35,600,000) 4,800,000 6,000,000 7,000,000 8,500,000 9,500,000 10,700,000 11,700,000 13,480,000 14,540,000 16,700,000 5 6 7 8 9 10 Document your answers in this section as you process each project, using the project numbers from directly above Year Project 1 Project 2 Project 3 Project 4 Projects Project 6 Project 7 Project 8 Project 9 Project 10 Westment (32,000,000) (9,200,000) (1,500,000) (96,000,000) (75,000,000) (30,000,000) (14,800,000) (17,000,000) (28,000,000) (35,600,000) HPV /R Rank IRR A/R Rank PI |A/R Rank Disc Payback A/R Rank Type X 0 0 Capital Rationing Problem - Available Capital Budget $160,000,000 Identify in the include/exclude columns which project to include in the current year given the available budget $'s Project Project Cost - YO NPV Accept/Reject NPV Rank Include/ Exclude Budget Avallable Information imported from Problem #2 Type X $ 160,000,000 1 (32,000,000) 0 0 $ 160,000,000 2 (9,200,000) 0 $ 160,000,000 3 (1,500,000) 0 $ 160,000,000 4 (96,000,000) 0 $ 160,000,000 5 (75,000,000) 0 0 $ 160,000,000 6 (30,000,000) 0 $ 160,000,000 7 (14,800,000) 0 $ 160,000,000 8 417,000,000) $ 160,000,000 9 (28,000,000) $ 160,000,000 10 (35,600,000) $ 160,000,000 0 ololololo 0 0 0 Project Year Project Cash Flow apital budgeting Evaluation Methods Discounted Discounted Payback Cash Flow Payback Years Minimum Payback Yes Accept or Reject 2 0 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 2 3 4 5 6 7 8 9 10 PVIFs 1.0000 0.8403 0.7062 0.5934 0.4987 0.4190 0.3521 0.2959 0.2487 0.2090 0.1756 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 5 Accept 5 Accept 5 Accept 5 Accept 5 Accept 5 Reject 5 Reject 5 Reject 5 Reject 5 Reject Payback Yrs Total Outflows Total Inflows Net Present Value Hurdle rate 19.00% IRR ENUMI Pro Index #DIV/0! 21 22 23 24 25 26 27 28 29 30 31 32 Year 0 1 2 3 4 5 6 Project 1 (32,000,000) 5,000,000 6,000,000 8,000,000 10,000,000 16,000,000 18,000,000 6,000,000 2,000,000 800,000 400,000 Project 2 19,200,000) (150,000) 700,000 1,100,000 2,500,000 2,700,000 2,700,000 1,900,000 900,000 130,000 84,000 Project 3 (1,500,000) (150,000) (100,000) (50,000) 500,000 770,000 790,000 490,000 530,000 700,000 900,000 Project 4 (96,000,000) 5,000,000 10,000,000 59,900,000 45,000,000 24,000,000 24,000,000 18,000,000 14,000,000 16,000,000 14,000,000 Projects (75,000,000) 12,500,000 13,900,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 14,000,000 Project 6 (30,000,000) 2,000,000 5,000,000 7,000,000 9,000,000 12,000,000 16,000,000 20,000,000 22,000,000 24,000,000 10,000,000 Project (14,800,000) 1,000,000 800,000 600,000 400,000 200,000 5,000,000 9,000,000 5,000,000 7,000,000 8,550,000 Project & (17,000,000) 2,000,000 3,500,000 3,600,000 2,800,000 2,640,000 2,580,000 2,000,000 8,000,000 12,000,000 18,000,000 Project 9 (28,000,000) 6,250,000 6,250,000 6,250,000 6,250,000 6,250,000 5,950,000 5,950,000 5,950,000 5,950,000 5,950,000 Project 10 (35,600,000) 4,800,000 6,000,000 7,000,000 8,500,000 9,500,000 10,700,000 11,700,000 13,480,000 14,540,000 16,700,000 7 8 9 10 Document your answers in this section as you process each project, using the project numbers from directly above Year Project 1 Project 2 Project 3 Project 4 Projects Project 6 Project 7 Project 9 Project 10 Project 8 (17,000,000) (32,000,000) (9,200,000) (1,500,000 (96,000,000) (75,000,000) (30,000,000) (14,800,000) (28,000,000) (35,600,000) vestment HPV /R Rank IRR A/R Rank PI |A/R Rank Disc Payback A/R Rank Type X 0 Capital Rationing Problem - Available Capital Budget $160,000,000. Identify in the include/exclude columns which project to include in the current year given the available budget $'s Project Project Cost - YO NPV Accept/Reject NPV Rank Include/Exclude Budget Available Information imported from Problem #2 Type X $ 160,000,000 1 (32,000,000) 0 $ 160,000,000 2 (9,200,000) 0 $ 160,000,000 3 (1,500,000) $ 160,000,000 4 (96,000,000) $ 160,000,000 5 (75,000,000) 0 $ 160,000,000 6 (30,000,000) 0 $ 160,000,000 7 (14,800,000) 0 $ 160,000,000 8 417,000,000) 0 $ 160,000,000 9 (28,000,000) 0 $ 160,000,000 10 (35,600,000) 0 $ 160,000,000 0 - o ololololololololo