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Objective: This assignment is designed to re-enforce your knowledge and skills in using project selection techniques, including computerized tools, such as MS Excel. This is

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Objective: This assignment is designed to re-enforce your knowledge and skills in using project selection techniques, including computerized tools, such as MS Excel. This is an individual assignment di assignment and collaborations of any kind will not be tolerated, and will be investigated and penalized as necessary Make sure you print the Excel sheets showing your calculations Task: ) 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: MPV dipenting factor is 10%, PVE. Year 0.97. Year 2-0.83 Year 3=0.75, Year 4 = 0.68 Year 2) IRR (cost of capital is 70%) 3) PI (cost of capital is 10%) 4) Discounted Payback period (maximum 3 years) B. Based on your Excel computation results in (A) above, determine whether each priest independently is feasible/acceptable or not, according to each of the 4 criteria above. Each the criteria above. Each project must be accepted/rejected on the basis of each criterion considered separately. E.g. 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 2 Year 3 Year 4 Costs Project 1 100 0 300 400 400 900 500 200 Benefits 400 100 300 Project 2 Costs Benefits 200 200 400 500 300 300 1,500 1,700 1,500 1,700 1,500 1,700 200 500 200 300 Costs Project 3 300 300 300 200 300 400 Benefits 500 300

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