Show the answer on excel and how you did it: Puppet is evaluating two alternative, mutually exclusive methods for delivering cloud platforms It has developed the following estimated after-tax cost savings for each alternative. Project managers want to see an incremental IRR and NPV before making the decision. If the project discount rate is 9%, which method would you recommend? Explain and provide evidence.  Show all cash flows and related analyses.  Clearly specify your recommendation and reasoning clearly on your worksheet. clearly show inputs and outputs areas.(Input Area:  Show all of your key inputs, with appropriate labels, before creating your analysis.  Add lines as needed.)(Output Area:  Show the development of your answers to each question below.  Clearly label inputs, steps and identify key results.) Project cash flows are as follows: Software Solution 1:  To: -115,000, T1: 45,000, T2: 40,000, T3: 35,000,  T4: 20,000, T5: 10,000 Software Solution 2:  To: -175,000, T1: 5,000, T2: 45,000, T3: 45,000,  T4: 70,000, T5: 95,000

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Show the answer on excel and how you did it: Puppet is evaluating two alternative, mutually exclusive methods for delivering cloud platforms It has developed the following estimated after-tax cost savings for each alternative. Project managers want to see an incremental IRR and NPV before making the decision. If the project discount rate is 9%, which method would you recommend?

Explain and provide evidence.  Show all cash flows and related analyses.  Clearly specify your recommendation and reasoning clearly on your worksheet. clearly show inputs and outputs areas.(Input Area:  Show all of your key inputs, with appropriate labels, before creating your analysis.  Add lines as needed.)(Output Area:  Show the development of your answers to each question below.  Clearly label inputs, steps and identify key results.)

Project cash flows are as follows:

Software Solution 1:  To: -115,000, T1: 45,000, T2: 40,000, T3: 35,000,  T4: 20,000, T5: 10,000

Software Solution 2:  To: -175,000, T1: 5,000, T2: 45,000, T3: 45,000,  T4: 70,000, T5: 95,000

 

then choose from the following:

Software Solution 2 since the incremental IRR > discount rate.

Software Solution 1 because the incremental IRR < discount rate.

Software Solution 2 since the incremental IRR < discount rate.

Software Solution 1 since the IRR < discount rate.

None of the above. Specify answer clearly in your worksheet.
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