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Questions to answer for this assignment: (75-points) 1. For each of the 11 proposed projects, calculate the project IRR, the spread (difference between IRR and

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Questions to answer for this assignment: (75-points) 1. For each of the 11 proposed projects, calculate the project IRR, the "spread" (difference between IRR and project cost of capital, and the Profitability Index (PI) - P.I being the crucial capital budgeting decision tool in this scenario of a constrained capital budget. Then rank the 11 project proposals on the both PI and the "spread" between IRR and project hurdle rates. How closely do ranking on PI versus "spread" match each other? It is best to do this exercise using the Excel sheet - that way I can examine the formulas used if necessary. You can also put no. 2 below on the same Excel sheet. (25-points) 2. Which set of projects should the board of Svenska Livsmedel AB select for the capital budget for 2022, given that the firm's capital budget constraint of SEK 1.7 billion? Or to put it another way: which bundle of projects has the highest possible NPV? Ranking projects by PI is the way to accomplish that task. How much NPV is the firm expected to receive from your suggested collection of projects? Questions to answer for this assignment: (75-points) 1. For each of the 11 proposed projects, calculate the project IRR, the "spread" (difference between IRR and project cost of capital, and the Profitability Index (PI) - P.I being the crucial capital budgeting decision tool in this scenario of a constrained capital budget. Then rank the 11 project proposals on the both PI and the "spread" between IRR and project hurdle rates. How closely do ranking on PI versus "spread" match each other? It is best to do this exercise using the Excel sheet - that way I can examine the formulas used if necessary. You can also put no. 2 below on the same Excel sheet. (25-points) 2. Which set of projects should the board of Svenska Livsmedel AB select for the capital budget for 2022, given that the firm's capital budget constraint of SEK 1.7 billion? Or to put it another way: which bundle of projects has the highest possible NPV? Ranking projects by PI is the way to accomplish that task. How much NPV is the firm expected to receive from your suggested collection of projects

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