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1 of 1 Project Management (0307530) Assignment No. 1/Fall 2019-2020 Due Date: Wednesday 02/10/2019 (esigned 18.9.2019) Total Raw Points: 20 Objective: This assignment is designed to re-enforce your knowledge and skills in using project selection techniques, including computerized tools, such as MS Excel. This is an individual assignment and collaborations of any kind will not be tolerated, and will be investigated and penalized as necessary! Make sure you print the Excel sheets showing your calculations Task: A. Given the following table with financial data on three projects, create MS Excel models to compute each of the following selection criteria for each project: 1) NPV (discounting factor is TOPVE Year 1-0,91 Year 2-0.33 Yr 3-0.75 Year -0.68 Year 5 -0.62) 2) IRR (cost of capital is 10% 3) PI (cost of capital is 10% 4) Discounted Payback period (maximum 3 years B. Based on your Excel computation results in (A) above, determine whether each project independently is feasible acceptable or not, according to each of the 4 criteria above. Each project must be accepted/rejected on the basis of each criterion considered separately. E.g. each project will have FOUR accept/reject decisions. C. If only ONE of the three projects should be selected, which project would you recommend, and why? D. Explain why there are differences and discrepancies in the recommendations of the four selection criteria E. Based on your answer to part (D) above, which of the above four criteria appear(s) more reliable and credible in the present scenario? Explain your reasoning Note: You can read any Finance book in the library or search the Internet for more information about the advantages and limitations of these selection models. Facts: The following table provides data about three projects scheduled to be completed in five years. The cash flows are in thousands of Dirhams and occur at the end of each year. Projects: Cast Benefits Year 1 Year 4 Year 5 Total 100 Year 3 300 400 SO 1.500 Year 2 200 200 400 FreeCats Benefits 200 1.700 Costs 300 1.500 Prajur 2 Benefits 100 1.700 300 200 300 200 Costs 1,500 Project 3 300 300 300 100 Benefits 500 1.700 1 of 1 Project Management (0307530) Assignment No. 1/Fall 2019-2020 Due Date: Wednesday 02/10/2019 (esigned 18.9.2019) Total Raw Points: 20 Objective: This assignment is designed to re-enforce your knowledge and skills in using project selection techniques, including computerized tools, such as MS Excel. This is an individual assignment and collaborations of any kind will not be tolerated, and will be investigated and penalized as necessary! Make sure you print the Excel sheets showing your calculations Task: A. Given the following table with financial data on three projects, create MS Excel models to compute each of the following selection criteria for each project: 1) NPV (discounting factor is TOPVE Year 1-0,91 Year 2-0.33 Yr 3-0.75 Year -0.68 Year 5 -0.62) 2) IRR (cost of capital is 10% 3) PI (cost of capital is 10% 4) Discounted Payback period (maximum 3 years B. Based on your Excel computation results in (A) above, determine whether each project independently is feasible acceptable or not, according to each of the 4 criteria above. Each project must be accepted/rejected on the basis of each criterion considered separately. E.g. each project will have FOUR accept/reject decisions. C. If only ONE of the three projects should be selected, which project would you recommend, and why? D. Explain why there are differences and discrepancies in the recommendations of the four selection criteria E. Based on your answer to part (D) above, which of the above four criteria appear(s) more reliable and credible in the present scenario? Explain your reasoning Note: You can read any Finance book in the library or search the Internet for more information about the advantages and limitations of these selection models. Facts: The following table provides data about three projects scheduled to be completed in five years. The cash flows are in thousands of Dirhams and occur at the end of each year. Projects: Cast Benefits Year 1 Year 4 Year 5 Total 100 Year 3 300 400 SO 1.500 Year 2 200 200 400 FreeCats Benefits 200 1.700 Costs 300 1.500 Prajur 2 Benefits 100 1.700 300 200 300 200 Costs 1,500 Project 3 300 300 300 100 Benefits 500 1.700

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