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The Logistics and Transportation Star Ltd is considering its alternative investments comprising its investment opportunity set (Investment A - Investment Z). The investments with their

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The "Logistics and Transportation Star" Ltd is considering its alternative investments comprising its investment opportunity set (Investment A - Investment Z). The investments with their relevant cash flows are as follows: Year Investment A Investment B Investment C Investment D Investment E Investment Z 0 -600,000,00 -480,000.00 -360,000.00 -240,000.00 -720,000.00 -840,000.00 1 168,000,00 120,000.00 180,000.00 48,000.00 240,000.00 300,000.00 2 168,000,00 120,000.00 84,000.00 48,000.00 240,000.00 240,000.00 3 180,000,00 180,000.00 84,000.00 84,000.00 240,000.00 240,000.00 4 180,000,00 180,000.00 84,000.00 84,000.00 192,000.00 168,000.00 5 190,000,00 190,000.00 94,000.00 94,000.00 190,000.00 178,000.00 You are asked to evaluate the above investments and answer the following questions assuming that the firm's cost of capital is 10%. a. Rank the investments from the best to the worst according to their Net Present Value (NPV) and Internal Rate of Return (IRR). Demonstrate your calculations (8 %) b. If Logistics and Transportation Star can invest up to 1,440,000, which are the investments that it should prefer? Explain your recommendations. (4%) c. If Logistics and Transportation Star can invest up to 1,800,000, which are the investments that it should prefer? Explain your recommendations. (4%) d. Rank the investments from the best to the worst according to the Simple Payback method. If Logistics and Transportation Star has as an accepted Payback period of 4 years, which investments would be considered as acceptable? Demonstrate your calculations (4%)

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