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The objective of this team assignment is to analyze the different investment decision criteria applied to the expected cashflow structure of a hypothetical project.
The objective of this team assignment is to analyze the different investment decision criteria applied to the expected cashflow structure of a hypothetical project. For this assignment, you need to apply quantitative reasoning and critical thinking, as well as problem-solving skills. Assignment Weight: 15% of the grade. Due Date: September 3, 2023, 23:59 hours. Submit using the provided links for report and Excel file under Week 9 in Moodle. Case Belgravia Petroleum Inc. is trying to evaluate a new investment project with the following cash flows: Year 0 1 2 3 4 5 6 7 8 Cashflow The discounting approach The reinvestment approach The combination approach O Net present value (NPV) -$1,200,000 $252,000 $340,000 Construct an Excel spreadsheet and calculate the following (the required rate of return is 12%): o Payback period O Discounted payback period O Internal rate of return (IRR) Modified IRR O -$200,000 $580,000 $700,000 -$200,000 $280,000 $288,000 Write a MS Word report using your standard UCW APA 7th template with the following structure: o Introduction o Analysis Analyze the cashflow structure of the project. What do you observe? Analyze the results with each descision criteria and compare the results. Under each method, determine if the company should take the project? Why? What if the required rate of return is 15%? If you had to choose only one decision criteria, what would that be? Why?
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