A Firm Has Three Independent Projects Under Consideration Each with a Required

question 27

Essay

A firm has three independent projects under consideration each with a required rate of return of 10%/ The total projects budget is only $2,000.Project X has an initial investment of $2,000 and a single cash flow in year one of $2,360.Project Y has an initial investment of $1,000 and a single cash flow in year one of $1,200.Project Z has an initial investment of $1,000 and a single cash flow in year one of $1,170.Calculate the IRR and NPV for each of these projects.If we assume that we cannot "repeat" these projects (i.e.,we cannot do project Z twice)which project or combination of projects should the firm undertake? Why?

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Definitions:

Forensic Anthropologists

Specialists who apply anthropological methods and techniques to assist in legal investigations, particularly in identifying human remains.

Skeletal Remains

The framework of bones left after other parts of the body have decayed away, often used in the context of archaeology and forensics.

Anthropological Ethics

The principles and guidelines that govern the conduct of researchers in the field of anthropology, emphasizing respect, consent, and non-harm towards study participants.

Ethnographic

Pertaining to the systematic study and documentation of peoples and cultures with respect to their histories, behaviors, and the significant differences among them.