Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 (PI) 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? 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 (PI) 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started