Instructions:

The total discounted inflows and outflows of three projects are given below:

Total discounted outflows Total discounted inflows

Project 1 $50,000 $150,000

Project 2 $80,000 $60,000

Project 3 $30,000 $50,000

1. Calculate the NPV and ROI for each of the three projects.

2. A manufacturing company has three projects it is considering. It uses two criteria to evaluate its projects, with weights as follows: Aligns with business goals (60%) and Return on Investment (40%). The three project scores for aligns with business goals is as follows: Project1=90, Project2=70, Project3=50. The scale for Return on Investment is as follows:

ROI range Project ROI score

ROI is less than 10% 20

ROI is between 10 and 50% 50

ROI is between 50 and 100% 80

ROI is greater than 100% 100

Set up a spreadsheet to calculate the weighted scores for the three projects, entering the scores and weights given for the three projects. Calculate the scores for Project ROI by using the ROI figures calculated in question 1, and the range table given in question 2.

3. Based on the project scores, which project(s) would you select? You may select zero, one, two, or all three projects. Defend your decision.

I need help in this assignment.