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Subject 3 (35%) The Final Destination-Logistics Ltd wants to analyse a set of potential investments. In particular, there is a number of available investments (A-Z)

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Subject 3 (35%) The Final Destination-Logistics Ltd wants to analyse a set of potential investments. In particular, there is a number of available investments (A-Z) with the following cash flow streams: Year Investment A Investment B Investment C Investment D Investment E Investment Z 0 -400.000,00 -320.000,00 -240.000,00 -160.000,00 -480.000,00 -560.000,00 1 112.000,00 80.000,00 120.000,00 32.000,00 160.000,00 200.000,00 2 112.000,00 80.000,00 56.000,00 32.000,00 160.000,00 160.000,00 3 120.000,00 120.000,00 56.000,00 56.000,00 160.000,00 160.000,00 4 120.000,00 120.000,00 56.000,00 56.000,00 128.000,00 112.000,00 5 120.000,00 120.000,00 56.000,00 56.000,00 120.000,00 112.000,00 Please assess the above information and answer the following questions if you know that the firm's cost of capital is 7%. a. Rank the investments according to their Net Present Value (NPV) and Internal Rate of Return (IRR). Demonstrate your calculations (14%) b. If Final Destination-Logistics can invest up to 960.000, which are the investments that it should prefer? Explain your recommendations. (7%) c. If Final Destination-Logistics can invest up to 1.200.000, which are the investments that it should prefer? Explain your recommendations. (7%) d. Rank the investments according to the Simple Payback method. If Final Destination-Logistics has as an accepted Payback period of 4 years, which investments would be considered as acceptable? Demonstrate your calculations (7%)

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