PLEASE ANSWER ASAP!! PART 1. CALCULATIONSGiven:A. The following hypothetical and undiscounted flows of benefits and costs for three (3) ProjectOptions (Project I, II, and III); andB. The following Discount Factors at 10% for Year 0 up to Year 4Year Discount Factor at 10% discount rate:1.0000.9090.8260.7510.68301234Requirements:A. Calculate the Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return(IRR) for each Project Option at a discount rate of 10%;B. Rank the 3 Project Options on the basis of NPV, BCR, and IRR criteria andC. Recommend which Project Option should be implemented. Why? Explain.PROJECT OPTION IYEAR2023 (year2024 (year 1)2025 (year 2)2026 (year 3)2027 (year 4)PROJECT OPTION IIYEAR2023 (year 0)2024 (year 1)2025 (year)2026 (year 3)2027 (year 4)PROJECT OPTION IIIYEAR2023 (year 0)2024 (year 1)2025 (year 2)INITIALINVESTMENT15,000,000INITIALINVESTMENT25,000,000INITIALINVESTMENT30,000,000ANNUALBENEFIT5,000,0007,000,00010,000,00014,000,000ANNUALBENEFIT7,000,00010,500,00012,000,00018,000,000ANNUALBENEFIT10,000,00015,000,000ANNUALMAINTENANCE COST1,000,0002,000,0003,400,0005,000,000ANNUALMAINTENANCE COST2,000,0003,500,0005,000,0007,000,000ANNUALMAINTENANCE COST3,000,0005,000,000 2026 (year 3)2027 (year 4)21,000,00032,000,0007,000,00011,000,000NOTE: YOU ARE AT LIBERTY TO USE MICROSOFT EXCEL IN YOUR COMPUTATIONS.OTHERWISE, YOU CAN COMPUTE MANUALLY.

Net present value shows the difference between the present value of cash inflows and outflows…

Given: A. The following hypothetical and undiscounted flows of benefits and costs for three (3) Project Options (Project I, II, and III); and B. The following Discount Factors at 10% for Year 0 up to Year 4 Year Discount Factor at 10% discount rate: 0 1.000 1 0.909 2 0.826 3 0.751 4 0.683 Requirements: A. Calculate the Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return (IRR) for each Project Option at a discount rate of 10%; B. Rank the 3 Project Options on the basis of NPV, BCR, and IRR criteria and C. Recommend which Project Option should be implemented. Why? Explain. PROJECT OPTION I YEAR 023 (year 0) 024 (year 1) 025 (year 2) 026 (year 3) INITIAL INVESTMENT 15,000,000 ANNUAL BENEFIT 5,000,000 7,000,000 10.000.000 ANNUAL MAINTENANCE COST 1,000,000 2,000,000 3.400.000

Given: A. The following hypothetical and undiscounted flows of benefits and costs for three (3) Project Options (Project I, II, and III); and B. The following Discount Factors at 10% for Year 0 up to Year 4 Year Discount Factor at 10% discount rate: 0 1.000 1 0.909 2 0.826 3 0.751 4 0.683 Requirements: A. Calculate the Net Present Value (NPV), Benefit Cost Ratio (BCR), and Internal Rate of Return (IRR) for each Project Option at a discount rate of 10%; B. Rank the 3 Project Options on the basis of NPV, BCR, and IRR criteria and C. Recommend which Project Option should be implemented. Why? Explain. PROJECT OPTION I YEAR 023 (year 0) 024 (year 1) 025 (year 2) 026 (year 3) INITIAL INVESTMENT 15,000,000 ANNUAL BENEFIT 5,000,000 7,000,000 10.000.000 ANNUAL MAINTENANCE COST 1,000,000 2,000,000 3.400.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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