You have just started your summer intership, and your boss asks you to review a recent analysis that was dons to compare the aleative proposals to enhance the fre's manufacturing twoity You find that the prior analysis red the proposals according to their ieft and recommended the highest IR option Proposal A You are concerned and decide is redo the analysis using NV to determine whether this recommendation was appropriate at while you are confte Rs were computed correctly, it seems that some of the underlying data regarding the cash fows that were estimated for each proposal was not included in the report For Proposal 8, you cannot find infomation regarding the titl investment that was required in Year 0. And for Proposal C. you cannot find the data regarding additional salvage value that will be recovered in Year 3. Here is the information you have no Proposal Year 0 Year 1 Year 2 IRR 60.0% 51.0% 47.0% -$100 -$100 $30 50 $37 $153 8206 $0 a. Determine the two missing data amounts b. Suppose the appropriate cost of capital for each alternative is 10% Using this information, determine the NPV of each proposal Which project should the fim choose? c. Why is ranking the projects by their IRR not valid in this situation? $0 395 $204+ You have just started your summer intership, and your boss asks you to review a recent analysis that was dons to compare the aleative proposals to enhance the fre's manufacturing twoity You find that the prior analysis red the proposals according to their ieft and recommended the highest IR option Proposal A You are concerned and decide is redo the analysis using NV to determine whether this recommendation was appropriate at while you are confte Rs were computed correctly, it seems that some of the underlying data regarding the cash fows that were estimated for each proposal was not included in the report For Proposal 8, you cannot find infomation regarding the titl investment that was required in Year 0. And for Proposal C. you cannot find the data regarding additional salvage value that will be recovered in Year 3. Here is the information you have no Proposal Year 0 Year 1 Year 2 IRR 60.0% 51.0% 47.0% -$100 -$100 $30 50 $37 $153 8206 $0 a. Determine the two missing data amounts b. Suppose the appropriate cost of capital for each alternative is 10% Using this information, determine the NPV of each proposal Which project should the fim choose? c. Why is ranking the projects by their IRR not valid in this situation? $0 395 $204+
