Type: Analysis
Pages: 4 | Words: 943

One of the most important functions or duties of a finance manager is to evaluate the project for the organization which ultimately increases the shareholder’s equity for the company. Project management sometimes referred as the project evaluation has been the major of concern for almost every organization. Inevitably, project evaluation is a tough job and due to its complexity a large number of people hire exceptional professionals to calculate and evaluate the best possible project for them.

In this short report, we will seek the answer of different project management questions. Before go in the details, one must have a very good idea regarding the terminology we will use throughout this paper, when we calculate the projects.

NPV = Net Present Value, In finance, the net present value (NPV) or net present worth (NPW) of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows

MARR: In business and engineering, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects. A synonym seen in many contexts is minimum attractiverate of return.

Now let’s start the analysis

Question-1

Ans-1)

The analytical sheet are mentioned below of all the projects,

 Project 1 Life = 10 Years Inflow of Earnings Net Present Value 1 -870,000 2 700,000 636363.64 3 700,000 578512.40 4 700,000 525920.36 5 700,000 478109.42 6 700,000 434644.93 7 700,000 395131.75 8 700,000 359210.68 9 700,000 326555.17 10 700,000 296868.33 4031316.67 Project Feasibility Positive NPV 3161316.7 IRR 80% Project 2 Life = 50 Years Inflow of Earnings Net Present Value 1 -830,000 2 700,000 636363.64 3 700,000 578512.40 4 700,000 525920.36 5 700,000 478109.42 6 700,000 434644.93 7 700,000 395131.75 8 700,000 359210.68 9 700,000 326555.17 10 700,000 296868.33 11 500000 192771.64 12 500000 175246.95 13 500000 159315.41 14 500000 144832.19 15 500000 131665.63 16 500000 119696.02 17 500000 108814.57 18 500000 98922.33 19 500000 89929.39 20 500000 81754.00 21 500000 74321.81 22 500000 67565.29 23 500000 61422.99 24 500000 55839.08 25 500000 50762.80 26 500000 46148.00 27 500000 41952.73 28 500000 38138.84 29 500000 34671.67 30 500000 31519.70 31 500000 28654.28 32 500000 26049.34 33 500000 23681.22 34 500000 21528.38 35 500000 19571.26 36 500000 17792.05 37 500000 16174.59 38 500000 14704.17 39 500000 13367.43 40 500000 12152.21 41 500000 11047.46 42 500000 10043.15 43 500000 9130.14 44 500000 8300.12 45 500000 7545.57 46 500000 6859.61 47 500000 6236.01 48 500000 5669.10 49 500000 5153.72 50 500000 4685.20 6104952.73 Project Feasibility Positive NPV 5274952.7 IRR 84% Project 3 Life = 50 Years Inflow of Earnings Net Present Value 1 -760,000 2 700,000 636363.64 3 700,000 578512.40 4 700,000 525920.36 5 700,000 478109.42 6 700,000 434644.93 7 700,000 395131.75 8 700,000 359210.68 9 700,000 326555.17 10 700,000 296868.33 11 1400000 539760.61 12 1400000 490691.46 13 1400000 446083.14 14 1400000 405530.13 15 1400000 368663.76 16 1400000 335148.87 17 1400000 304680.79 18 1400000 276982.54 19 1400000 251802.31 20 1400000 228911.19 21 1400000 208101.08 22 1400000 189182.80 23 1400000 171984.36 24 1400000 156349.42 25 1400000 142135.84 26 1400000 129214.40 27 1400000 117467.63 28 1400000 106788.76 29 1400000 97080.69 30 1400000 88255.17 31 1400000 80231.97 32 1400000 72938.16 33 1400000 66307.42 34 1400000 60279.47 35 1400000 54799.52 36 1400000 49817.74 37 1400000 45288.86 38 1400000 41171.69 39 1400000 37428.81 40 1400000 34026.19 41 1400000 30932.90 42 1400000 28120.82 43 1400000 25564.38 44 1400000 23240.35 45 1400000 21127.59 46 1400000 19206.90 47 1400000 17460.82 48 1400000 15873.47 49 1400000 14430.43 50 1400000 13118.57 9837497.64 Project Feasibility Positive NPV 9007497.6 IRR 92% Project 4 Life = 50 Years Inflow of Earnings Net Present Value 1 -685,000 2 700,000 636363.64 3 700,000 578512.40 4 700,000 525920.36 5 700,000 478109.42 6 700,000 434644.93 7 700,000 395131.75 8 700,000 359210.68 9 700,000 326555.17 10 700,000 296868.33 11 3000000 1156629.87 12 3000000 1051481.70 13 3000000 955892.45 14 3000000 868993.14 15 3000000 789993.76 16 3000000 718176.15 17 3000000 652887.41 18 3000000 593534.01 19 3000000 539576.37 20 3000000 490523.97 21 3000000 445930.88 22 3000000 405391.71 23 3000000 368537.92 24 3000000 335034.47 25 3000000 304576.79 26 3000000 276887.99 27 3000000 251716.36 28 3000000 228833.05 29 3000000 208030.05 30 3000000 189118.23 31 3000000 171925.66 32 3000000 156296.05 33 3000000 142087.32 34 3000000 129170.29 35 3000000 117427.54 36 3000000 106752.31 37 3000000 97047.55 38 3000000 88225.05 39 3000000 80204.59 40 3000000 72913.26 41 3000000 66284.78 42 3000000 60258.89 43 3000000 54780.81 44 3000000 49800.74 45 3000000 45273.40 46 3000000 41157.64 47 3000000 37416.03 48 3000000 34014.58 49 3000000 30922.34 50 3000000 28111.22 16473133.03 Project Feasibility Positive NPV 15643133.0 IRR 103% Project 4 Life = 50 Years Inflow of Earnings Net Present Value 1 -630,000 2 700,000 636363.64 3 700,000 578512.40 4 700,000 525920.36 5 700,000 478109.42 6 700,000 434644.93 7 700,000 395131.75 8 700,000 359210.68 9 700,000 326555.17 10 700,000 296868.33 11 4000000 1542173.16 12 4000000 1401975.60 13 4000000 1274523.27 14 4000000 1158657.52 15 4000000 1053325.02 16 4000000 957568.20 17 4000000 870516.54 18 4000000 791378.68 19 4000000 719435.16 20 4000000 654031.96 21 4000000 594574.51 22 4000000 540522.28 23 4000000 491383.89 24 4000000 446712.63 25 4000000 406102.39 26 4000000 369183.99 27 4000000 335621.81 28 4000000 305110.74 29 4000000 277373.40 30 4000000 252157.63 31 4000000 229234.21 32 4000000 208394.74 33 4000000 189449.76 34 4000000 172227.06 35 4000000 156570.05 36 4000000 142336.41 37 4000000 129396.74 38 4000000 117633.40 39 4000000 106939.45 40 4000000 97217.68 41 4000000 88379.71 42 4000000 80345.19 43 4000000 73041.08 44 4000000 66400.99 45 4000000 60364.53 46 4000000 54876.85 47 4000000 49888.04 48 4000000 45352.77 49 4000000
Copy-pasting equals plagiarizing!

Mind that anyone can use our samples, which may result in plagiarism. Want to maintain academic integrity? Order a tailored paper from our experts.

3 hours