(solved) Assignment on Financial Management

Added on - 16 May 2020

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FINANCIAL MANAGEMENT
ContentsSOLUTION 1:..................................................................................................................................................................................................................................3SOLUTION 2:..................................................................................................................................................................................................................................5SOLUTION 3:................................................................................................................................................................................................................................11SOLUTION 4:................................................................................................................................................................................................................................12References...................................................................................................................................................................................................................................13
SOLUTION 1:Yes the projects can be ranked by simply inspecting the cash flows. Below is the table of raking:Project number:1234567Year0-5,000-10,000-15,000-25,000-25,000-30,000-35,00011,0001,0001,7001,00011,000-3,000-9,00021,0002,0001,7001,20010,00010,000-3,00031,0002,0001,7003,0009,0009,0006,00048003,0001,7004,0008,0006,0006,00058003,0001,7005,0007,0006,0008,00067004,0001,7006,0006,0006,00012,00076004,0001,7007,0005,0004,50012,00086002,0001,7008,0004,0004,50014,00095002,0001,7009,0003,0003,00014,000
105002,0001,70011,000-5,0003,00014,000Sum of cash-flow benefits7,50025,00017,00055,20058,00049,00074,000Excess of cash flow over initialinvestment2,50015,0002,00030,20033,00019,00039,000Ranking6573241In the above table we have simply ranked the project based on the net cash flows. The net cash flows are calculated by netting off the cashinflows and outflows. Therefore, based o the same, project 7 is ranked number 1, since it has the highest cash flows. (Peterson & Fabozzi, 2012)
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