First three questions completed from chegg experts. Please complete the other questions

First three questions answer is below

of Capital Budgeting Techniques eUREKA.com is trying to decide between two alterntive machines. They are aware that they have several methods to evaluate and compare the alternatives. They give the task of evaluating the two alternatives using different techniques to Tolga and Aisha. They work a day and invite the department for a meeting the next morning. That morning all department members gather together to go over the problems from beginning to the end Tolga and Aisha go over their cakculations step by step trying to explain to the members of the department the caveats of the methods and how they should be used if chosen as the decision making criteria. Thye put the slide with the following cash flows to the screen and ask for everyone to take a very careful look at the numbers. 800000 600000 400000 350000 400000 500000 650000 200000 200000 1. Caloulate the Payback Period of each project. Explain what argument Toga and Alisha 2, Calculate the Discounted Payback Period (DPP) using 10% as the discount rate. Should 3. Calaulate the two projects' IRR. How should Tolga and Aisha convince the Department 4. Construct the NPV profle graphic for the two projects and explain the relevance of the should make to show that the Payback Period is not appropriate in this case Tolga and Aisha ask the Department Head to use DPP as the deciding factor? Explain. Head that the IRR measure could be misleading? crossover point. How should Toiga and Aisha convince the Board that the NPV method is the way to go? S. Explain how Tolga and Aisha can show that the Modified Internal Rate of Return is the more realistic measure to use in the case of mutually eachash e projects. You may use 10% as the reinvestment rate. 6. Calaulate the Profitability Index for each proposall. Can this measure help to solve the dilemma? Explain. In looking over the documentation prepared for the two machines, it appears to you that the simtotech analysis has been somewhat more conservative in its revenue projections than the valarium team. What impact might this have on your analysis 7. 8. inlooking over the documentation prepared for two machines, it appears to you that the simtotech technology would require extensive development before it could be mplemented whereas the valarium technology is available "off-the-shelf. What impact might this have on your analysis Payback period refers to the time within which the project is expected to recover all its cash outflows associated with the respective project but without considering time value of money. So, shorter the payback period, higher the acceptibility of the project because all cash outflows are recovered in short period so that uncertainity of cash flows after the payback period need not be worried about by the management. However, that is the drawback of using payback too. Cash Flows Cash Flow CFs 1000,000 1,000,000 200,000Cumulative CFs Turns to eve 500,000 250,000Cumulative CFs Turns to sve 200,000 200,000 00,000 1,600,000 Payback Period 0 years (2 years+($250,000/$500,000)1 1.50 years 15200,00/400,0oojl Discounted payback period refers to the time within which the project is expected to recover all its cashulows associated with the respective project but by considening time value of money, So, shorter the discounted payback period, higher the acceptibility of the project because all cash outflows are recovered in short period so that uncertainity of dincounted cash flows after the discounted payback peniod need not be worried about by the management. However, that is the drawback of using discounted payback period too. PV Factor Cash Flo Cash Flow Present Value Cumlative lal $800,000 $0,000.00 800,000 .90909 20.82645 75131 68301 5 042092 150,000 $318,181 82 -9681,88 1 400,000 $330,578 51 $351,23967 500,000 S17s,657A0 $2.417.73 ..> Turns to "ve $650,000 $443,95875 $468 376 4 700,000 $434,644 93 $903,021.0 400,000 $30,57S N,0336 Turnes to ve 300,000 $2252444$301427.50 200,000 $136,802.69 $438 010.19 S200.000 S12AIS4 26 S562.214.45 Oscounted Payback Perlod 2 years+ I5351 239 67/5375,857.401 1 year+(5254,545.45/$330,578 51) Thank you for sharing answers for first 2 questions answered by one of our experts. Conclusion part is as below for first two questions: Based on Payback period as well as Discounted payback period, both the projects are acceptable as both the projects' Payback period and Discounted payback period are less than project's estimated life of 5 years. That is, shorter the Payback period or Discounted payback period, higher the acceptability of a project. However, if the two projects are mutually exclusive, firm must choose the project that results the least Payback period or Discounted payback period. As a result, firm must choose Valarium project as its Payback period as well as Discounted payback period are shorter than that of Simtotech. Year Simtotech Valarlum 1,000,000 800,000 400,000 400,000 60,000 50,000 200,000 200,000 42.91% 500,000 650,000 700,000 200,000 200,000 700,000 36.63% IRR IRR IRRs can be calculated using EXCEL FUNCTION IRR(values, guess) inserting cash flows in B2 thru C7 as per EXCEL SCREENSHOT copied above. IRR stands for Internal Rate of Return which is the discount rate that makes project's future cash equals to initial investment or in other words, IRR is the rate which makes NPV equals to zero. Higher the IRR, higher the acceptability of a project. That is, project shall be accepted if IRR is greater than the cost of capital associated with the project. in the given case, both the projects IRR are higher than firm's cost of capital of 1056 and so both the projects are acceptable. However if the projects are mutally exclusive, firm must choose Valarium project as it yields the higher IRR of 42.91% than sin totech's IRR of 36.63%