You have made the followed calculation for your client. You must make a decision concerning the project they can take with a budget of 190 Million €. You know the pros and cons of each rule, and you try to make the best decision by comparing the results. Comment the table and explain your decisions Required PV NPV IRR PI Investment Project 1 -110.00 0.15 209.44 4.16 0.17 0.038 Project 2 - 80.00 0.06 153.68 39.77 0.30 0.497 Project 3 Project 4 Project 5 - 70.00 0.10 151.30 27.90 0.30 0.399 - 90.00 0.08 156.92 19.70 0.18 0.219 - 50.00 0.25 252.59 25.04 0.51 0.501

You have made the followed calculation for your client. You must make a decision concerning the project they can take with a budget of 190 Million €. You know the pros and cons of each rule, and you try to make the best decision by comparing the results. Comment the table and explain your decisions Required PV NPV IRR PI Investment Project 1 -110.00 0.15 209.44 4.16 0.17 0.038 Project 2 - 80.00 0.06 153.68 39.77 0.30 0.497 Project 3 Project 4 Project 5 - 70.00 0.10 151.30 27.90 0.30 0.399 - 90.00 0.08 156.92 19.70 0.18 0.219 - 50.00 0.25 252.59 25.04 0.51 0.501

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hi there, I am working on this problem. Can you please show me each step in solving this question without using excel? I am trying to figure out how to calculate the payback period for each project and also how do I calculate the IRR for each project? Riley Ltd. has the following 5 investment projects to choose from, the company needs to select one project.
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