Exercise 3 (30%) - Multiple Investment Decision Note: The provided Excel sheet Data Exercise 3" contains the below table. The company Save Our Planet Inc. is considering 12 projects within the areas of the "17 Sustainable Development Goals set out by the United Nations. The initial investment and future cash flows are shown in the table below. The discount rate in Save Our Planet is 15%. Please use the table to answer the following questions: A. Determine the net present value (NPV) and internal rate of return (IRR) for all the investment options. B. Rank all investments options in terms of the profitability index (Pl) ratio with four decimals. C. Describe when you would typically use a profitability index (Pl) in investment decision making? D. Which investments would you choose if you were limited by an investment budget of DKK 1,000,000? E. Which investments would you choose if you were to pick three projects in the "people" classification and three projects in the "planet" classification - so six projects in total? 4 5 6 Investment UN Goal CF A Time Classification People People People People People People Planet Planet D No Poverty No Poverty No Poverty Zero Hunger Zero Hunger Zero Hunger Affordable and Clean Energy Affordable and Clean Energy Affordable and Clean Energy Climate Action Climate Action Climate Action E 0 Investment -98,000 -133,500 -201,000 -148,500 -209,000 -129,000 -160,000 -162,000 -193,000 -156,000 -184,000 -144,000 1 CF 25,283 43,030 51,565 51,218 56,849 49,191 69,326 43,942 61,993 50,588 69,266 46,044 2 CF 26,383 39,840 56,517 48,095 64,634 47,662 55,779 27,856 65,311 45,649 54,271 42,128 3 CF 29,296 39,605 51,535 45,075 55,512 41,399 53,095 48,925 53,386 46,012 69,432 49,682 30,253 49,573 57,969 41,476 56,566 48,238 68,711 F CF 25,874 39,331 53,398 43,105 55,061 45,965 50,668 42,695 57,234 43,581 57,200 47,446 CF 44,925 46,617 54,689 47,309 66,009 42,087 68,271 43,871 57,361 40,491 53,677 50,572 G H 50,534 1 Planet Planet J 64,487 46,085 68,415 46,550 K Planet Planet L Exercise 3 (30%) - Multiple Investment Decision Note: The provided Excel sheet Data Exercise 3" contains the below table. The company Save Our Planet Inc. is considering 12 projects within the areas of the "17 Sustainable Development Goals set out by the United Nations. The initial investment and future cash flows are shown in the table below. The discount rate in Save Our Planet is 15%. Please use the table to answer the following questions: A. Determine the net present value (NPV) and internal rate of return (IRR) for all the investment options. B. Rank all investments options in terms of the profitability index (Pl) ratio with four decimals. C. Describe when you would typically use a profitability index (Pl) in investment decision making? D. Which investments would you choose if you were limited by an investment budget of DKK 1,000,000? E. Which investments would you choose if you were to pick three projects in the "people" classification and three projects in the "planet" classification - so six projects in total? 4 5 6 Investment UN Goal CF A Time Classification People People People People People People Planet Planet D No Poverty No Poverty No Poverty Zero Hunger Zero Hunger Zero Hunger Affordable and Clean Energy Affordable and Clean Energy Affordable and Clean Energy Climate Action Climate Action Climate Action E 0 Investment -98,000 -133,500 -201,000 -148,500 -209,000 -129,000 -160,000 -162,000 -193,000 -156,000 -184,000 -144,000 1 CF 25,283 43,030 51,565 51,218 56,849 49,191 69,326 43,942 61,993 50,588 69,266 46,044 2 CF 26,383 39,840 56,517 48,095 64,634 47,662 55,779 27,856 65,311 45,649 54,271 42,128 3 CF 29,296 39,605 51,535 45,075 55,512 41,399 53,095 48,925 53,386 46,012 69,432 49,682 30,253 49,573 57,969 41,476 56,566 48,238 68,711 F CF 25,874 39,331 53,398 43,105 55,061 45,965 50,668 42,695 57,234 43,581 57,200 47,446 CF 44,925 46,617 54,689 47,309 66,009 42,087 68,271 43,871 57,361 40,491 53,677 50,572 G H 50,534 1 Planet Planet J 64,487 46,085 68,415 46,550 K Planet Planet L