Facts: The following table provides data about three projects scheduled to be completed in five years. The cash flows are in thousands of Dirhams and occur at the end of each year. Projects Cost Benefits Year 1 Year 5 Costs 100 Year 3 300 400 Project 500 200 Benefits Costs Year 2 200 200 400 500 300 300 Year 4 400 900 100 200 300 400 300 300 200 300 200 Total 1,500 1,700 1,500 1,700 1,500 1,700 Project 2 Benefits Costs 300 300 300 Project 3 Benefits 500 A Given the following table with financial data on three projects, create MS Excel models to compute each of the following selection criteria for each project 1) NPV (discounting factor is 10% PVF Year / 001 Year Yar Yar Yews 2) IRR (cost of capital is 10%) 3) PI (cost of capital is 100 4) Discounted Payback period (maximum 3 years) ) B. Based on your Excel computation results in (A) above, determine whether each project independently is feasible acceptable or not, according to cach of the 4 criteris aboveEach project must be accepted/rejected on the basis of each criterion considered separately. Eg each project will have FOUR accept reject decisions C. If only ONE of the three projects should be selected, which project would you recommend, and why? D. Explain why there are differences and discrepancies in the recommendations of the four selection criteria E. Based on your answer to part (D) above, which of the above four criteria appear(s) more reliable and credible in the present scenario? Explain your reasoning Note: You can read any Finance book in the library or search the Internet for more information about the advantages and limitations of these selection models. Facts: The following table provides data about three projects scheduled to be completed in five years. The cash flows are in thousands of Dirhams and occur at the end of each year. Projects Cost Benefits Year 1 Year 5 Costs 100 Year 3 300 400 Project 500 200 Benefits Costs Year 2 200 200 400 500 300 300 Year 4 400 900 100 200 300 400 300 300 200 300 200 Total 1,500 1,700 1,500 1,700 1,500 1,700 Project 2 Benefits Costs 300 300 300 Project 3 Benefits 500 A Given the following table with financial data on three projects, create MS Excel models to compute each of the following selection criteria for each project 1) NPV (discounting factor is 10% PVF Year / 001 Year Yar Yar Yews 2) IRR (cost of capital is 10%) 3) PI (cost of capital is 100 4) Discounted Payback period (maximum 3 years) ) B. Based on your Excel computation results in (A) above, determine whether each project independently is feasible acceptable or not, according to cach of the 4 criteris aboveEach project must be accepted/rejected on the basis of each criterion considered separately. Eg each project will have FOUR accept reject decisions C. If only ONE of the three projects should be selected, which project would you recommend, and why? D. Explain why there are differences and discrepancies in the recommendations of the four selection criteria E. Based on your answer to part (D) above, which of the above four criteria appear(s) more reliable and credible in the present scenario? Explain your reasoning Note: You can read any Finance book in the library or search the Internet for more information about the advantages and limitations of these selection models
