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Manager Cafe "Daiton" is considering investing in 2 (two) projects. Project X is an investment of $ 75,000 to replace its refrigeration equipment works but outdated / outdated. Project Y is an investment of $ 1,500,000 expand the dining room facilities. C

Manager Cafe "Daiton" is considering investing in 2 (two) projects. Project X is an investment of $ 75,000 to replace its refrigeration equipment works but outdated / outdated. Project Y is an investment of $ 1,500,000 expand the dining room facilities. Cash flow data is relevant for both projects for 2 years which are expected are as follows: Project X Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.16 $ 0 0.08 $ 0 0.66 50000 0.82 50000 0.18 100000 0.10 100000 Project Y Year 1 Year 2 Probability Cash Flow Probability Cash Flow 0.50 $ 0 0.13 $ 0 0.50 200000 0.74 100000 0.13 200000 a. Compute: Expected value, standard deviation, and coefficient of variation for cash flows of each project. b. Calculate: Risk-adjusted NPV for each project using cost of capital 15% for riskier projects, and cost of capital 12% for less risky projects. Which project is more profitable with using the NPV criteria? c. Calculate: PI for each project, and rank the projects according to the criteria PI. FM-BINUS-AA-FPU-78 / V2R0 Verified by, [Diena Dwidienawati] (D6179) and sent to Department / Program on January 11th 2021 Page 3 of 3 d. Compute: IRR for each project, and rank projects accordingly IRR criteria. e. Compare your answers to b, c, and d, and discuss any differences.
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