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Investment Detective Case

In: Business and Management

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Financial Management (BUSI 640) Professor Faulkender

Investment Detective
Case Questions

The purpose of this case is to practice estimating the value created from taking on different projects and how those values change given differences in rates of return and project duration. We will look at different ways of evaluating capital budgeting decisions and see why Net Present Value (NPV) generates better decisions than other methods. Ignore the questions provided in the case itself.

the Return on Investment (Excess of cash flow over initial investment divided by the initial investment).
|No. |Project |Return on Investment |
|1 |3 |400.00% |
|2 |5 |110.00% |
|3 |8 |107.50% |
|4 |4 |78.05% |
|5 |1 |65.50% |
|6 |7 |28.00% |
|7 |6 |10.00% |
|8 |2 |8.25% |

the payback period.
|No. |Project |Payback Period (y) |
|1 |6 |1 |
|2 |2 |2 |
|3 |7 |2 |
|4 |4 |6

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