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SCF Ltd. is evaluating the following projects. Past practice has been to accept all projects...

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Finance

SCF Ltd. is evaluating the following projects. Past practice has been to accept all projects with IRRs greater than the firm's cost of capital of 10%. All figures are in millions. Cash outflows are indicted as negative values and cash inflows as positive values.
NOTES: Negative values are cash outflows; Positive values cash inflows Place ONLY YOUR ANSWERS (NO CALCUALTIONS) in the boxes provided.
Required:
(a) The following three mutually exclusive projects have very simple cash flows. Fill in the blank cells and explain which project should be chosen and why. (10 marks)
\table[[Project,\table[[Year O],[Cash flow]],\table[[Year 1],[Cash flow]],\table[[Year 2],[Cash flow]],NPV @ 10%,IRR,PI],[A,(72.0),90.0,0.0,,,],[B,(150.0),180.0,0.0,,,],[C,(150.0),0.0,208.9,,,]]
(b) Should SCF Ltd. accept Project Z? Fill in the blank cells and explain your decision. (3 marks)
\table[[Project,C0,C1,NPV @ 10%,IRR],[Z,100.0,(125.0),,]]
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