Project Evaluation Criteria

896 WordsMay 28, 20134 Pages
Addis Ababa University college of business and economics PROJECT MANAGEMENT AND ANALYSIS [PROJECT ASSIGNMENT ON DISCOUNTING AND ALTERNATIVE INVESTMENT CRITERIA] [pic] [pic] 1. Answer for question 1. Alternative A: Glass Bottle Unit |Year |Inflow |Outflow |NCF | Alternative B: A new unit |Year |inflow |outflow |NCF | Decision: If Ms. Hadash evaluate the projects using the 8% discount rate, she would choose Alternative B which is to set up a new plant in order to…show more content…
|1.59 |49.99 | |7 |80 |48 |32 |1.47 |47.02 | |8 |80 |48 |32 |1.36 |43.54 | |9 |80 |48 |32 |1.26 |40.31 | |10 |80 |48 |32 |1.17 |37.32 | |11 |75 |44.5 |30.5 |1.08 |32.94 | |12 |22 |0 |22 |1.00 |22.00 | | |NFV |61.97 | Alternative B: A new unit |Year |Inflow |Outflow |NCF |FvF@8% |Fv@8% | |0 |0 |103 |-103 |2.52 |-365.13 | |1 |0 |80 |-80 |2.33 |-303.11 | |2 |63 |32.5 |30.5 |2.16 |76.64 | |3 |68 |37 |31 |2.00 |79.96 | |4 |72 |42 |30 |1.85 |75.89 |
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