Review the listed projects by providing npv

Reference no: EM13828590

Mr. de Ville, the owner of Tasman Ian de Ville Investments Ltd. (TIDI) has asked you to evaluate five investment projects. TIDI has a $10,000,000 investment budget, an investment hurdle rate of 11.0 %, and the owner has a requirement that all investments have a Payback Period (PBP) of < 3.5 years. Also, Project 2 brings the offices and warehouse up to the current fire code and the listed savings are the "facilitation payments" (e.g. bribes) that will no longer need to be made to inspectors to avoid the office being shut-down.

Year end	Project I	Project 2	Project 3	Project 4	Project 5
00	-S830,000	-5150,000	-$850,000	-S5,000,000	-S350,000
01		50,000	100,000	800,000	250,000
02		50,000	100,000	800.000	250,000
03		50,000	200,000	800.^,	250,000
04		50,000	700,000	800,000	250,000
05			700,000	800,000	-2,750,000
06-30	1,100,000			800,000	250,000

Please review the above listed projects by providing NPV, IRR, PBP, B/Cratio and do not forget social legitimacy needs and select the ones that should be brought to the attention of the owner for investment consideration.

Reference no: EM13828590

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