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From the performance of the options, option A is the most feasible, having the highest probability of 1 and a cash flow of $58,637,913.00 at the end of the fifth-year payback period.
The recommendation from this project is to adopt option A and abandon options B and C. Alternatively, the investment can be liquidated at a value of $58,637,913.00. The risk is low for option A and the probabilities are only of two options, either 1 or 0.
The purpose of the analysis is to calculate the 5 years of cash inflows, the first 5. The other aspect of interest is the NPV of choice. The higher the NPV, the more feasible the option is (Benaroch and Kauffman, 1999).
However, NPV and Decision Trees are traditional tools, hence, may not accurately indicate the exact ability and value of the investment project.
If options A and B were to be equal, then it would be required that the cash inflows of option A be reduced and the cash inflows of option B be increased.
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