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Lesson 2 Chapter 2 Homework × re http://newconnect.rnheducationc Ia search Lesson 2 Chapter 2 Homework Saved Help Save & Exit Subn Check my work 8 EX2-5 (Algo) You are the head of the project... 769 points You are the head of the project selection team at SIMSOX. Your team is considering three different projects. Based on past history, SIMSOX expects at least a rate of return of 24 percent Given the following information for each project, which one should be SIMSOX first priority? Should SIMSOX fund any of the other projects? (Use the NPV function in Excel to solve this problem.) Project Dust Devils eBook wwYear Investment Revenue Stream S90,000 55,000 295, 000 395, 000 Project: Ospry Year Investment Revenue Stream 340,000 46,000 46, 000 46,000 Project Voyagers Year Investnment Revenue seresn 33,000 25, 000 68.000 59, 000 141,000 The NPV for Dust Dedls is The NPy for Ospry is The NPV for Voyagers is C Prev8 of 13 Next>Explanation / Answer
Project : Dust devils
Year
Investment
Cash inflow
Pv factor
NPV
0
-590000
-590000
1
55000
0.833
45815
2
295000
0.694
204730
3
395000
0.579
228705
-110750
Project: Ospry
Year
Investment
Cash inflow
Pv factor
NPV
0
-340000
-340000
1
46000
0.833
38318
2
46000
0.694
31924
3
46000
0.579
26634
4
83000
0.482
40006
-203118
Project : Voyagers
Year
Investment
Cash inflow
Pv factor
NPV
0
-93000
-93000
1
33000
0.833
27489
2
25000
0.694
17350
3
68000
0.579
39372
4
59000
0.482
28438
5
141000
0.402
56682
76331
NPV of Dust devils
-110750
NPV of Ospry
-203118
Npv of Voyagers
76331
Project : Dust devils
Year
Investment
Cash inflow
Pv factor
NPV
0
-590000
-590000
1
55000
0.833
45815
2
295000
0.694
204730
3
395000
0.579
228705
-110750
Project: Ospry
Year
Investment
Cash inflow
Pv factor
NPV
0
-340000
-340000
1
46000
0.833
38318
2
46000
0.694
31924
3
46000
0.579
26634
4
83000
0.482
40006
-203118
Project : Voyagers
Year
Investment
Cash inflow
Pv factor
NPV
0
-93000
-93000
1
33000
0.833
27489
2
25000
0.694
17350
3
68000
0.579
39372
4
59000
0.482
28438
5
141000
0.402
56682
76331
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