18 A company considers the following investment project A (all amount are in millions of euros; all cash flows at the en

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18 A Company Considers The Following Investment Project A All Amount Are In Millions Of Euros All Cash Flows At The En 1 (170.23 KiB) Viewed 42 times

18 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. 4 3 2 1 0 440.0 lo 29.0 178.0 98.0 198.0 NOCF The risk profile of project A dictates a WACC of 5.4% for this investment project. As it appears, project A has an IRR of 7.6%, and a payback period of 2.65 years. As an alternative investment, the following information is given for project B, which requires an upfront initial investment, lo, of C540.0 mln, which is a cash outflow, and this project also generates positive cash inflows. EACF IRR WACC Payback period P.1 NPV 11.3% C-26.0 mlnly 3.41 years 6.1% 0.83 €-90.0 mln 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 (Pl) of project A? Provide your final answer rounded to two decimal places, and use a decimal point (no comma), For example You calculate a PI of 1.23456, and give in: 1.23 Answer i 1.0pc What is the EACF of project A? Provide your final answer rounded to the nearest whole number fin millions) For example, you calculate an EACF of €23.456 million, and you now give in: 23 Answer 182 17d 17a 17b 170 16 15 13 14