A Company Considers The Following Investment Project A All Amount Are In Millions Of Euros All Cash Flows At The End O 1 (52.39 KiB) Viewed 36 times
A Company Considers The Following Investment Project A All Amount Are In Millions Of Euros All Cash Flows At The End O 2 (41.37 KiB) Viewed 36 times
A Company Considers The Following Investment Project A All Amount Are In Millions Of Euros All Cash Flows At The End O 3 (18.9 KiB) Viewed 36 times
A company considers the following investment project A (all amount are in millions of euros; all cash flows at the end of each year). The initial investment. lo. is a cash outflow: all NOCFs are cash inflows. 0 1 2 3 To 370.0 NOCF 175.0 140.0 83.0 9.0 The risk profile of project A dictates a WACC of 3.0% for this investment project. As it appears, project A has an IRR of 5.7%, and a payback period of 2.66 years, As an alternative investment, the following information is given for project B, which requires an upfront initial investment.lo of €600.0 mln, which is a cash outflow, and this project also generates positive cash inflows. P.I NPV WACC Payback period IRR EACF 0.62 €-230.0 mln 5.5% 3.38 years 12.0% €-66.0 mln/y Projects A and B have the same expected lifespan.
1.0p a What is the NPV of project A? Provide your final answer rounded to the nearest whole number (in millions). Would your NPV be negative, then use a minus sign. For example, you calculate an NPV of - €123.45678 million, and thus you now answer: -123 Answer 1.0p b What is the Profitability Index (PI) of project A? Provide your final answer rounded to two decimal places, and use a decimal point (no comma). For example: You calculate a Pl of 1.23456, and give in: 1.23 Answer 1.0pc What is the EACF of project A? Provide your final answer rounded to the nearest whole number (in millions). For example, you calculate an EACF of €23.456 million, and you now give in: 23 Answer
1.Op d Which project should you now prefer, based upon the below criteria? さて Project А Project B Indifferent (equally good) O NPV O Profitability index O EACF о IRR O O о Payback period O O
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