Financial Analysis:(25 points)
a. Which NPV of those shown in Exhibit 5 should be used? Why?
b. Using all NPV forms presented in Exhibit 5, rank the projects.
c. Since the wastewater treatment project is a cost of doing business, it does not have a NPV. Suggest a way to evaluate the effluent project.
d. List the projects that would be funded or unfunded using the financial analysis (include Project 6 in your list)
2. Weighted Scoring Model Analysis (60 points)
Based on the paper by Englund and Graham (1999), Chapter 2 (Kloppenborg (2017)) and the case information,
a. Use a scoring model to evaluate and select projects (pp. 45-47, Kloppenborg):
i. List and define potential criteria
ii. List and define those criteria that are mandatory (i.e., screening) criteria
iii. Weight the remaining criteria using an AHP process
b. Which projects were screened from further consideration in part 2a, ii?
c. Rank order the remaining projects based on the group analysis.
3. Were the results different between the financial analysis (Question 1) and the weighted scoring model (Question 2) approach? If yes, why? (5 points)