Hi There,

I am looking to find the following :Using the same cash flows in exhibit I find the NPV, PI, IRR and MIRR. Which project(s) would you recommend and why?

Exhibit 1 is attached

EXHIBIT I Initial Investment Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Sum of cash flow benefits Excess of cash flow Over investment Project cash flows in (000) Project1 Project2 Project3 Project4 $ 2,000.00 $ 2,000.00 $ 2,000.00 ### $ 330.00 $ 1,666.00 $ 330.00 $ 334.00 $ 330.00 $ 165.00 $ 330.00 $ 330.00 $ 330.00 $ 330.00 $ 1,000.00 $ 5,000.00 $ 9,000.00 $ 160.00 $ 200.00 $ 350.00 $ 395.00 $ 432.00 $ 440.00 $ 442.00 $ 444.00 $ 446.00 $ 448.00 $ 450.00 $ 451.00 $ 451.00 $ 452.00 $ (2,000.00) Project5 Project6 $ 2,000.00 $ 2,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 280.00 $ 2,200.00 280.00 280.00 280.00 280.00 280.00 $ 4,000.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 280.00 $ 3,310.00 $ 7,165.00 $ 9,000.00 $ 3,561.00 $ 4,200.00 $ 6,200.00 $ 1,310.00 $ 5,165.00 $ 7,000.00 $ 1,562.00 $ 2,200.00 $ 4,200.00 Yellows/italics indicate year in which payback is accomplished Project7 Project8 $ 2,000.00 $ 2,000.00 $ 1,200.00 $ (350.00) $ 900.00 $ (60.00) $ 300.00 $ 60.00 $ 90.00 $ 350.00 $ 70.00 $ 700.00 $ 1,200.00 $ 2,250.00 $ 2,000.00 $ 4,560.00 $ 4,150.00 $ 2,560.00 $ 2,150.00 Project 1 Project 2 Project Project 3 4 Presen t Value of Cash flow = (PV x Cash flow) ((1 (-$2,000) $2,000 $2,000) ) 0.909 1,514.39 299.97 0.826 275.88 272.58 0.751 123.91 247.83 0.683 225.39 0.621 204.93 0.564 186.12 0.513 169.29 Present PV Present Factor Value of Value of @ 10% Cash Cash flow flow = = (PV x (PV x Cash Cash flow) flow) Year 0 1 2 3 4 5 6 7 8 0.467 467 9 0.424 10 0.386 11 0.35 12 0.319 13 0.29 14 0.263 15 Net Present Value = (Sum of Present Value of Cash flows) 0.239 $73.11 1,930 ### Present Value of Cash flow = (PV x Cash flow) Project 6 Present Value of Cash flow = (PV x Cash flow) Present Value of Cash flow = (PV x Cash flow) ((-$2,000) $2,000) 254.52 145.44 165.2 231.28 262.85 269.78 268.27 248.16 226.74 207.34 189.10 172.92 157.5 143.86 130.79 118.87 2,151 (478) $ 151 Project 5 (-$2,000) 1,999.8 210.28 191.24 173.88 157.91 143.64 130.76 118.72 108.08 98 89.32 81.20 73.64 66.92 ### $ 48.19 -( $ 0.2) Ranking of The Project s on basis of Net PResent Value Rank Project 1st 2 2nd 4 3rd 8 4th 7 5th 6th 3 7th 1 5 Project 7 Project 8 Present Value of Cash Present Value of flow = Cash flow = (PV (PV x x Cash flow) Cash flow) ((-$2,000) $2,000) ### 743.3 225.3 61.47 43.47 -318.15 -(49.56) 45.06 239.05 434.7 676.8 1,154.25 ### $182.15 8th 6