hey check the work, if u can do it in high quailty, i needed it done in 2 days

PBF-Assessment 4 [Due date: 7 January 2024]

[Topic 7a-Capital Budgeting]

A firm is considering two investment projects, Y and Z. These projects are NOT mutually

exclusive. Assume the firm is not capital constrained. The initial costs and cashflows for these

projects are:

(a) Using a discount rate of 9% calculate the net present value for each project. What decision

would you make based on your calculations? (4 marks)

(b) How would your decision change if the discount rate used for calculating the net present

value is 15%? (4 marks)

(c) Calculate an approximate IRR for each project. Assume the hurdle rate is 9%. What decision

would you make based on your calculations? (4 marks)

(d) Calculate the payback period for each project. The company looks to select investment projects

paying back in 2 years. What decision would you make based on your calculations? (3 marks)

(e) Critically discuss Net Present Value (NPV), Internal Rate of Return (IRR) and payback

period as criteria for investment appraisal. (10 marks)

Remark:

Submit to: Canvas Assignment [doc or pdf file]

Filename: Class — Name — Index Number [eg. L41 Robert Lee #100]

Y Z

0 -40,000 -28,000

1 17,000 12,000

2 17,000 12,000

3 15,000 20,000