See the attached file.
1. Use Excel, or another suitable program, to calculate each of the following; show your work:
- Payback Period for Option A
- Internal Rate of Return for Option A
- Net Present Value for Option A
- Payback Period for Option B
- Internal Rate of Return for Option B
- Net Present Value for Option B
2. Using the calculations in the first criterion, clearly present the results for Option A and for Option B as though for an audience of city council members.
3. The city council says they can adopt only one (1) of the projects this year. Pick one (1) and justify the choice to the city council.
4. You are getting push back from the city engineer that both projects are vital and should be done this year. You really want to find a way to make both projects happen. Create a solution that would allow both projects to be implemented. Note: in this case, the Required Return is 12% and the Critical Acceptance Level is 2.75 years.© BrainMass Inc. brainmass.com April 3, 2020, 11:39 pm ad1c9bdddf
This solution provides steps to calculate payback periods, internal rate of returns and net present values.