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Prepare the information required for the problems. Using that information, complete the Moodle quiz Problem 1-Capital Budgeting using Payback Analysis: Paybac! Cancel ently used to
Prepare the information required for the problems. Using that information, complete the Moodle quiz Problem 1-Capital Budgeting using Payback Analysis: Paybac! Cancel ently used to screen capital budget request. Althought is nas some disadvantages, it is straightforward and easy to comprehend. Net Present Value is another tool used tool to screen capital budget request. Use the same information to determine which are qualified projects and the preferred project under NPV. Andrews Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Lori Bart, staff analyst at Andrews, is preparing an analysis of the three projects under consideration by Corey Andrews, the company's owner. Project B $1,500,000 Project C $4,000,000 Project A Initial investm $3,000,000 Annualcash saved by operations: Year 1 1,000,000 Year 2 1,000,000 Year 3 1,000,000 Year 4 1,000,000 400,000 900,000 800,000 0 0 2,000,000 2,000,000 200,000 100,000 Note Andrews Construction requires a return of 10% Calculations Sheet Required 1: Yr. 1 Yr. 2 a. Determine each proposal's payback. Show your answer in a table format. b. Identify the best proposal baased on Payback analysis. a. 1,000,000 400,000 2,000,000 1,000,000 900,000 2,000,000 1,000,000 800,000 200,000 1,000,000 0 100,000 Yr. 3 Yr. 4 Payback b. Best Project Problem 2-Capital Budgeting using Net Present Value Analysis: Required 2: a. Determine each proposal's net Present Value. Show your answer in a table format. b. Identify the best proposal baased on NPV analysis. a. Rate from table Yr. 1 Yr. 2 Yr. 3 Yr. 4 1,000,000 1,000,000 1,000,000 1,000,000 PV Investment NPV 400,000 900,000 800,000 0 2,000,000 2,000,000 200,000 100,000 3.000.000 1.500.000 4.000.000 b. Best
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