This case presents the cash flows of eight unidentified investments, all of equal initial investment size. Your task is to rank the projects. The first objective of the case is to encourage you to examine critically the principal capital-budgeting criteria. A second objective is for you to consider the problem that arises when net present value (NPV) and internal rate of return (IRR) disagree as to the ranking of two mutually exclusive projects. You were recently hired in the finance department of a corporation that has a number of subsidiaries with different investment projects. You are assigned to analyze eight different projects based strictly on their cash flow streams using the payback, IRR, and NPV techniques. All of the projects are independent projects, except for projects 7 and 8 which are mutually exclusive. Before doing any calculations, can we rank the projects simply by inspecting the cash flows? What analytical criteria can we use to rank the projects? How do you define each criterion? Which of the two projects, 7 or 8, is more attractive? How sensitive is our ranking to the use of high discount rates? Why do NPV and IRR disagree? What rank should we assign to each project? Why do payback and NPV not agree completely? Why do average return on investment and NPV not agree completely? Which criterion is best? Are those projects comparable on the basis of NPV? Because the projects have different lives, are we really measuring the net present value of the short-lived projects? Tasks: Prepare a one page summary of your analysis that addresses the questions. Be sure to reference supporting exhibits (Excel spreadsheets) where appropriate. Copy your Tables that contain all rankings into your Word Doc report and submit both your report and excel files in the dropbox. For your final recommendation assume that the weighted average cost of capital for the firm is equal to 10%. Please fill all excel with formulas

In the space below create a NPV Profile for all projects. West formulas in blas cells above to complete anulysh. rou do not invd to create formula for payback method, you can juit noport each ane by linpertling actual numberk. In column B, rown 2 to 9 rank the prolects bused on popback starting with the beat prolect parback. Wist the proiect's porback in column A In the space below create a NPV Profile for all mutual exclusive projects. List the greitet's rifin caluthit In colamn B,C, and H rews 12 to 19 rank the peojects beved on NFY akartint with the best NFN at different dhoount rates. State which criteria you recommend and finul eanking in columns A and D, rows 2 to 2 In the space below create a NPV Profile for all projects. West formulas in blas cells above to complete anulysh. rou do not invd to create formula for payback method, you can juit noport each ane by linpertling actual numberk. In column B, rown 2 to 9 rank the prolects bused on popback starting with the beat prolect parback. Wist the proiect's porback in column A In the space below create a NPV Profile for all mutual exclusive projects. List the greitet's rifin caluthit In colamn B,C, and H rews 12 to 19 rank the peojects beved on NFY akartint with the best NFN at different dhoount rates. State which criteria you recommend and finul eanking in columns A and D, rows 2 to 2