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I need help with this Financial Management Assignment please it needs to be in excel format NEED HELP ASAP QUESTION 1 20 Marks Radar lnc
I need help with this Financial Management Assignment please it needs to be in excel format NEED HELP ASAP
QUESTION 1 20 Marks Radar lnc is currently evaluating two (2) mutually exclusive projects. The following represents the expected cash flows for both projects. The company's discount rate is 12%. Years 2 3 Pro ect Re ir 350 000 125 000 125 ooo 225 ooo Re ce 400 ooo 175 ooo 100 ooo 125 ooo Year 2 3 0.8929 0.7972 0.7118 Required: (a) Using the following, indicate which project(s) should be chosen under each selection criteria: Payback ii. Net Present Value (3 Marks) Discounted (6 Marks) (b) Compute the Internal Rate of Return for Project Repair only, if it falls between 12% and 16%. Should the company accept this project under the IRR criteria, why? (6 Marks) Year 2 3 16% 0.8621 0.7432 0.6407 (c) Companies may utilize any of the criteria above to evaluate projects. Identify the criteria that is considered the most favourable, outlining any three (3) advantages of this criteria. (5 Marks)
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