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You have just been hired as a senior financial manager of the x Y Z Inc. by the eccentric CEO, Elon Tusk. Elon is considering
You have just been hired as a senior financial manager of the Inc. by
the eccentric CEO, Elon Tusk. Elon is considering the following potential
project all cash flows happen at the end of the year Assume the cost of
capital for Inc. is
Required:
A marks What is the NPV for each project?
B marks What is the IRR for each project?
C marks What is the payback period for each project?
D marks Suppose Elon Tusk tells you that you are allowed to
recommend only one project. Based on your answers in the previous
parts, which one would you recommend if the projects are mutually
exclusive and why?
E marks Elon Tusk informs you that the projects are not mutually
exclusive anymore, but the available budget is now $ Which
projects would you recommend and why?
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