The Greek Star Logistics company wants to assess its investment opportunity set. Specifically, the following...
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The Greek Star Logistics company wants to assess its investment opportunity set. Specifically, the following investments (A-D) with the relevant cash flows are available: Year Investment A Investment B Investment C Investment D 0 -60.000,00 -60.000,00 -60.000,00 -60.000,00 1 20.000,00 40.000,00 0,00 0,00 2 20.000,00 20.000,00 0,00 0,00 3 20.000,00 20.000,00 50.000,00 0,00 4 20.000,00 0,00 50.000,00 0,00 5 20.000,00 0,00 50.000,00 140.000,00 Acceptable payback period for the investment is 2.5 years. Using this information, you are required to: a. Calculate the Simple Payback period for each investment. Then assess which of the investments should be accepted. (10%) b. Calculate the Net Present Value (NPV) of each investment considering a 7% discount rate. (10%) c. Ranking each investment according to the NPV and the Simple Payback method (5%)
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