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Show all working and make sure to round to 2dp Project Year ($) -385,000 -551,000 -416,000 Year 1 ($) 105,000 175,000 171,000 Year 2 (S)
Show all working and make sure to round to 2dp
Project Year ($) -385,000 -551,000 -416,000 Year 1 ($) 105,000 175,000 171,000 Year 2 (S) 165.000 162.000 178,000 Year 3 (5) 182,000 172,000 185,000 Year 4 (5) 118.000 160,000 104000 Year ($) 197000 120.000 141,000 B The discount factors based on the RRR are as follows: Year 1 0.91743 Year 2 0.84168 Year 3 0.77218 Year 4 0.70343 Year 5 0.64993 Important . For all amounts, please don't include the dollar sign ($) or any thousands separator-ie, $12,000 should be written as 12000 . For all amounts (ARR. PP and NPV), please round up to 2 decimal places (e.g. 123456.789 should be written as 123456.79). For ARR, make sure you express it as a percentage, rounded up to 2 decimal places (e.g. 14.548% should be written as 14.55) - please don't include the % (percentage) sign For negative NPV, please include the - (minus) sign in front of the amounts. Please don't place the amounts in parentheses. . Please use the discount factors provided in the question to calculate NPV. Required: a. Calculate the three investment appraisal measures for each project ARR for Project A: ARR for Project B ARR for Project PP for Project A years PP for Project B: years PP for Project years NPV for Project AS NPV for Project B: NPV for Projects b. Rank the projects from 1 to 3 based on each individual investment appraisal measure and overall (with rank of 1 given to the project that is the best in terms of the individual investment appraisal measure or overall). For the overall ranking. please assume that each individual investment appraisal measure has the same weighting/importance. Project A Project B Project Ranking based on ARR Ranking based on PP Ranking based on NPVStep by Step Solution
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