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Addis Ababa University
college of business and economics
PROJECT MANAGEMENT AND ANALYSIS
[PROJECT ASSIGNMENT ON DISCOUNTING AND ALTERNATIVE INVESTMENT CRITERIA]
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1. Answer for question 1.
Alternative A: Glass Bottle Unit
|Year |Inflow |Outflow |NCF |
Alternative B: A new unit
|Year |inflow |outflow |NCF |
Decision: If Ms. Hadash evaluate the projects using the 8% discount rate, she would choose Alternative B which is to set up a new plant in order to…show more content…
|1.59 |49.99 |
|7 |80 |48 |32 |1.47 |47.02 |
|8 |80 |48 |32 |1.36 |43.54 |
|9 |80 |48 |32 |1.26 |40.31 |
|10 |80 |48 |32 |1.17 |37.32 |
|11 |75 |44.5 |30.5 |1.08 |32.94 |
|12 |22 |0 |22 |1.00 |22.00 |
| |NFV |61.97 |
Alternative B: A new unit
|Year |Inflow |Outflow |NCF |[email protected]% |[email protected]% |
|0 |0 |103 |-103 |2.52 |-365.13 |
|1 |0 |80 |-80 |2.33 |-303.11 |
|2 |63 |32.5 |30.5 |2.16 |76.64 |
|3 |68 |37 |31 |2.00 |79.96 |
|4 |72 |42 |30 |1.85 |75.89 |
