1. Build a ModelBuild a
Model11/26/18Chapter:10Problem:23Gardial Fisheries is
considering two mutually exclusive investments. The projects'
expected net cash flows are as follows:Expected Net Cash
FlowsTimeProject AProject
B0($375)($575)1($300)$1902($200)$1903($100)$1904$600$19
05$600$1906$926$1907($200)$0a. If each project's cost of
capital is 12%, which project should be selected? If the cost of
capital is 18%, what project is the proper choice? @ 12% cost
of capital @ 18% cost of capitalUse Excel's NPV function as
explained in this chapter's Tool Kit. Note that the range does
not include the costs, which are added separately.WACC
=12%WACC =18%NPV A =NPV A =NPV B =NPV B =At a
cost of capital of 12%, Project A should be selected. However,
if the cost of capital rises to 18%, then the choice is reversed,
and Project B should be accepted.b. Construct NPV profiles
for Projects A and B.Before we can graph the NPV profiles for
these projects, we must create a data table of project NPVs
relative to differing costs of capital.Project AProject
B0%2%4%6%8%10%12%14%16%18%20%22%24%26%28%30
%c. What is each project's IRR?We find the internal rate of
return with Excel's IRR function:IRR A =Note in the graph
above that the X-axis intercepts are equal to the two projects'
IRRs.IRR B =d. What is the crossover rate, and what is its
significance?Cash flowTimedifferential012Crossover rate
=34The crossover rate represents the cost of capital at which the
two projects value, at a cost of capital of 13.14% is:
have the same net present value. In this scenario, that common
net present567e. What is each project's MIRR at a cost of
capital of 12%? At r = 18%? Hint: note that B is a 6-year
project. @ 12% cost of capital @ 18% cost of capitalMIRR A =
DII Labs: Use Excel's MIRR function

2. DII Labs: The difference in cash flows between Project "A" and
Project "B".
DII Labs: Net Present Value of "A" discounted at a WACC of
12%
DII Labs: The IRR for the Cash Flow Differential
DII Labs: Net Present Value of "A" discounted at a WACC of
18%
MIRR A =MIRR B =MIRR B =f. What is the
regular payback period for these two projects?Project ATime
period01234567Cash
flow(375)(300)(200)(100)600$600$926($200)Cumulative cash
flowIntermediate calculation for paybackPayback using
intermediate calculationsProject BTime period01234567Cash
flow-$575$190$190$190$190$190$190$0Cumulative cash
flowIntermediate calculation for paybackPayback using
intermediate calculationsPayback using PERCENTRANKOk
because cash flows follow normal pattern.g. At a cost of
capital of 12%, what is the discounted payback period for these
two projects?WACC =12%Project ATime period01234567Cash
flow-$375-$300-$200-$100$600$600$926-$200Disc. cash
flowDisc. cum. cash flowIntermediate calculation for
paybackPayback using intermediate calculationsProject BTime
period01234567Cash flowDisc. cash flowDisc. cum. cash
flowIntermediate calculation for paybackPayback using
intermediate calculationsDiscounted Payback using

3. PERCENTRANKOk because cash flows follow normal
pattern.h. What is the profitability index for each project if the
cost of capital is 12%?PV of future cash flows for A:PI of A:PV
of future cash flows for B:PI of B:
NPV Profiles
00.020.040.060.080.10.120.140000000000000010.160.180.20.2
20.240.260.280000000000000030.300.020.040.060.080.10.120.
140000000000000010.160.180.20.220.240.260.28000000000000
0030.3
Cost of Capital
NPV
Project A
Project B
4
References
Machado, G. V., Cunha, Í., Pereira, A., & Oliveira, L. B.
(2019). DOD-ETL: distributed on-demand ETL for near real-
time business intelligence.
Journal of Internet Services and Applications,
10(1), 1-15.
https://link.springer.com/article/10.1186/s13174-019-0121-z
Munappy, A. R., Mattos, D. I., Bosch, J., Olsson, H. H., &
Dakkak, A. (2020, June). From ad-hoc data analytics to dataops.
In
Proceedings of the International Conference on
Software and System Processes (pp. 165-174).
https://research.chalmers.se/publication/521464/file/521464_Ful
ltext.pdf

4. Qayyum, R. (2020). A roadmap towards big data opportunities,
emerging issues and Hadoop as a solution.
Rida Qayyum." A Roadmap Towards Big Data
Opportunities, Emerging Issues and Hadoop as a
Solution
", International Journal of Education and Management
Engineering (IJEME),
10(4), 8-17. https://j.mecs-press.net/ijeme/ijeme-v10-
n4/IJEME-V10-N4-2.pdf
Activity: Develop Your Recommendation with Evidence
Replicate the orange columns in your notebook.
Steps
Name of Steps
Description of Steps

5. Guidance to Success
Citations
3
Form your recommendation
Use your selected company/organization/
program/policy as a basis for your recommendation.
Connect this recommendation to the research problem.
· Identify what is the same and different between your research
population and the ‘solution’s’ population:
Same:
Different:
· Explain how you envision the “specific parts of the ‘solution’”

6. helping to mitigate your research problem:
· What must be changed/altered to work for YOUR problem?:

7. Activity: Find a Company/Organization/Policy Working to
Mitigate the Problem
Steps
Name of Steps
Description of Steps
Guidance to Success
Citations
2
Find and summarize an existing evidence-based solution to use
as a foundation to YOUR recommendation.
Conduct further research to find a company/organization/
program/policy that is doing a good job trying to mitigate this
problem (this could be from another state or even another

8. country where populations are comparable).
· Include the name of company/organization/
program/policy:
· Include detailed evidence that this ‘solution’ is working (do
not forget to include dates/years, and statistics as support):
· Identify specific ‘parts’ of the ‘solution’ that you think will be
useful and define/summarize them:
Replicate the orange columns in your notebook.

9. Activity: Summarize Your News Article to Identify the
Problem and Populations Affected
Replicate the orange columns in your notebook.
Steps
Name of Steps
Description of Steps
Guidance to Success
Citations
1
Summarize, making sure to identify:
·
the problem

10. ·
populations affected by the problem
·
location of the problem, if applicable
Whatever your research problem is, you will need to summarize
the proof that the problem exists today by providing an
‘example’ of your research problem happening in the world.
For your ‘example’, you will use a news article or even your
research articles for KG-604, but in other courses it may be a
case study from your textbook, a summary of the problem
provided by your professors, or you may need to find a relevant
‘case’ on your own.
1. Identify the problem:
2. Identify populations affected:

11. 3. Identify the location: