Project A: 8yr double declining balance value is $12,000,0000.00

Project B: 8yr double declining balance value is $18,707,728.00

Project C: 8yr double declining balance value is $27,419,163.57

assume the rate is 5.5%

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. - There are three probable projects for your company to build and use as investments for eight years. The Option of taking none of them is available for you to consider. All three are resort hotels with ski lodges in Colorado. The difference among them is that of size and naturally the scheduling given the fact that larger projects will take longer. The factor of probability and the risk will be part of your decision, so apply what you learnt in class and your judgement. The chosen project is supposed to be available (substantial completion) by Mon, November 14 2021 and operable by Friday, Nov 13th 2021. Work can start as soon as January 4 2021: Hint: It is all about which project will make the best investment for the lifetime it may offer throughout. It may sound like a subjective situation but it is all very objective and based on investment and revenue Project A Project C Cost in PV: S45 Mil Cost in PV $55 Mil Annual Costs $1.2 Mil Annual Costs $2.3 Mil Annual Revenue 55.3 Mil Annual Revenue: S6 Mil Anticipated Life 12 Years Anticipated Life: 24 Years Salvage Value $12 Mil Salvage Value S6 Mil Schedule Schedule: Optimistic 160 days Optimistic 180 days Pessimistic 235 days Pessimistic 260 days Likely duration 210 days Likely duration 220 days Project B Project D Cost in PV: $48 Mil Do nothing Lose nothing'Earn nothing Annual Costs S1.3 Mil Annual Revenue: S6 Mil Anticipated Life 18 Years Salvage Value: S6 Mil Schedule Optimistic 170 days Pessimistic 250 days Likely duration 213 days 0 . . 0 0 Problem statement: Determine through IRR which project shall be the most advantageous, explain your decision and show your work. . - There are three probable projects for your company to build and use as investments for eight years. The Option of taking none of them is available for you to consider. All three are resort hotels with ski lodges in Colorado. The difference among them is that of size and naturally the scheduling given the fact that larger projects will take longer. The factor of probability and the risk will be part of your decision, so apply what you learnt in class and your judgement. The chosen project is supposed to be available (substantial completion) by Mon, November 14 2021 and operable by Friday, Nov 13th 2021. Work can start as soon as January 4 2021: Hint: It is all about which project will make the best investment for the lifetime it may offer throughout. It may sound like a subjective situation but it is all very objective and based on investment and revenue Project A Project C Cost in PV: S45 Mil Cost in PV $55 Mil Annual Costs $1.2 Mil Annual Costs $2.3 Mil Annual Revenue 55.3 Mil Annual Revenue: S6 Mil Anticipated Life 12 Years Anticipated Life: 24 Years Salvage Value $12 Mil Salvage Value S6 Mil Schedule Schedule: Optimistic 160 days Optimistic 180 days Pessimistic 235 days Pessimistic 260 days Likely duration 210 days Likely duration 220 days Project B Project D Cost in PV: $48 Mil Do nothing Lose nothing'Earn nothing Annual Costs S1.3 Mil Annual Revenue: S6 Mil Anticipated Life 18 Years Salvage Value: S6 Mil Schedule Optimistic 170 days Pessimistic 250 days Likely duration 213 days 0 . . 0 0 Problem statement: Determine through IRR which project shall be the most advantageous, explain your decision and show your work