Conduct a discounted cash flow calculation to determine npv

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1. A medical research firm is planning to re-locate to one of four cities within the United States. Review the table below and develop a weighted project selection model with a minimum of 5 criteria (one criteria has been provided to get you started) to aid in the selection of the correct city.

Assign fictional scores to each criterion for each of the 4 cities, provide a legend, and total the score. Make a recommendation based upon the score. Complete the assignment using Microsoft Excel.

City

Cost to Operate

Skilled Worker Availability

Flint

Low

High

Toronto

Medium

Low

Boston

High

Low

Chicago

High

High

2. Two new Internet site projects are proposed to a young start-up company. Project A will cost $100,000 to implement and is expected to have an annual net cash flow of $20,000. Project B will cost $400,000 to implement and should generate annual net cash flows of $90,000. The company is very concerned about their cash flow. Using the payback period, which project will return their money the soonest?

3. A four-year financial project has net cash flows of $50,000, $40,000, $30,000, and $10,000 in the next four years. It will cost $175,000 to implement the project. If the required rate of return is 20%, conduct a discounted cash flow calculation to determine the NPV.

4. List the 8 steps of the Project Portfolio Process. Which step do you believe is the most difficult to complete and why?

Attachment:- Ch-2 Strategic Management and Project Selection.rar

Reference no: EM131846810

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