need handwritten with formulas, NO EXCEL You have a selection of...
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Finance
need handwritten with formulas, NO EXCEL
You have a selection of the following projects the cash flow structure Cash Flows Project CFO CF1 CF2 CF3 CF4 CF5 A -1000 +1000 0 0 0 0 B -2000 +1000 +1000+4000 +1000 +1000 -3000 +1000+10000 +1000+1000 The opportunity cost for all of the projects is 10% a. Calculate the NPV for all three projects. Which project/s do you accept? Why? (10 marks) b. Calculate the payback period for each project. Justify which project(s) would you choose if your company is young (2 years old)? How would your answer change if the company is a well-established company with high liquidity? (10 marks)
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