Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life:Project’s Cash Flow ($)Time (n)Project AProject BProject CProject D0-$1,500-$1,200-$1,600-$3,00010$600-$1,800$80020$800$800$1,9003$3,000$1,500$2,500$2,300Compute the Net Present worth of each project where interest rate is 9%.Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? (you will be using the same rate that was for part A for this part.Calculate the IRR for each projectShow all workings in excel

Net present worth is the present value of future cashflows

Answered: Consider the following investment…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life:

Project’s Cash Flow ($)
Time (n)	Project A	Project B	Project C	Project D
0	-$1,500	-$1,200	-$1,600	-$3,000
1	0	$600	-$1,800	$800
2	0	$800	$800	$1,900
3	$3,000	$1,500	$2,500	$2,300

Compute the Net Present worth of each project where interest rate is 9%.
Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? (you will be using the same rate that was for part A for this part.
Calculate the IRR for each project

Show all workings in excel

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