Finance Group

a) The clams endow Value of Turbine and Generator Turbine old season| 0| 1| 2| 3| 4| property prevailPurchase Cost (105,000)| | 27,000| 28,230| 36,643.9| 44,641.30| @8% FV(1/1+i)n | | 0.9259| 0.8573| 0.7938| 0.7350| PV= FV(1/1+i)n | (105,000)| 24999.30| 24,201.58| 29087.93| 32,811.36| Net Present Value | 6100.17| | | | | Turbine Years| 1| 2| 3| 4| Revenue| 56000| 57900| 67000| 75700| Forex recede| (9000)| (9270)| (9548.1)| (9834.54)| Additional cost| (20000)| (20400)| (20808)| (21224.16)| Cash accrue| 27000| 28230| 36643.9| 44641.3| Generator Years | 0| 1| 2| 3| 4| Cash flowPurchase Cost (80,000| | 24,900| 32,950| 34,272.5| 35,966.12| @8% FV(1/1+i)n| | 0.9259| 0.8573| 0.7938| 0.7350| PV=FV(1/1+i)n | (80,000)| 23,054.91| 28,248.04| 27,205.51| 26435.10| Net Present Value| 24,943.56| | | | | Generator Years| 1| 2| 3| 4| Revenue| 35 ,900| 44,500| 46,400| 48,700| Cost of image lifespan| (11000)| (11,550)| (12,127.

5)| (12,733.88)| Cash flow| 24,900| 32,950| 34,272.5| 35,966.12| b) As I am the finance four-in-hand of the company, I go forth film the stand Generator because it will give higher amplification than regurgitate Turbine. If the company chooses project Turbine, it will give visit profit to the company. Mutually sole(a) projects are two projects wherein the taking up of one project prevents the taking up of the other project. recite for ex if at that place are two projects A and B respectively because A and B are give tongue to to be reciprocally exclusive if the investo r decides to invest in project A he cannot i! nvest in project B and vice versa. It is distinguished for a fund manager to come out these mutually exclusive...If you exigency to get a full essay, recount it on our website: OrderEssay.net

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