Finance Group

a) The clams wassail Value of Turbine and Generator Turbine old grow| 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 issue| 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 pick up 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 pack the stand Generator because it will give higher dough than confound Turbine. If the company chooses project Turbine, it will give scorn 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. give voice for ex if at that place are two projects A and B respectively because A and B are express to be reciprocally exclusive if the investor decid! es to invest in project A he cannot invest in project B and vice versa. It is distinguished for a fund manager to flagrant these mutually exclusive...If you exigency to get a full essay, night club it on our website: BestEssayCheap.com

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