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Task: A. Given the following table with cash flows (in thousands of dollars) for four projects, compute and find each of the following selection criteria

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Task: A. Given the following table with cash flows (in thousands of dollars) for four projects, compute and find each of the following selection criteria for each project: 1) NPV 2) IRR 3) ROI (discounting approach) 4) Payback period (discounting approach, whole number/year) B. Based on your calculation results in (A) above, determine whether each project, considered independently. is feasible/acceptable or not, using each of the following decision rules: a. NPV: only positive values are accepted b. IRR: Cost of capital is 7% C. ROI: RRR = 10% d. Payback: maximum 3 years C. Based on your results in (A) and (B) above, rank the three projects from 1 to 3 according to their financial desirability (i.e. #1 best, #2 second best, etc.) Table 1: Cash Flows (Note: cash flows occur at the end of each year) Projects: Cost/Benefits Year 1 Year 2 Year 3 Year 4 Total Gross Benefits PVF: 0.93 0.87 0.82 0.76 Benefits 3,000 5,000 6,000 18,000 Project 1 4,000 2,000 6,000 5,000 1,000 16,000 Benefits 3,000 5,000 6,000 6,000 20,000 Project 2 2.000 Costs 4,000 4,000 5,000 5,000 18,000 Benefits 2,000 5,000 7,000 7,000 21,000 Project 3 2,000 Costs 3,000 6,000 5,000 5,000 19,000 4,000 Costs Notes: 1. Since cash flows occur at the end of the year, payback must be a whole number, with no fraction. 2. Your answer to (B) must indicate for EACH project whether the project is acceptable" or "not acceptable/rejected" using EACH of the four criteria (i.e. four accept/reject decisions for each project). Roalha 2 Ti muhittad d through the limi

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