1.3 Using the projected cash flows project A, B and C respectively, calculate the NPV of each project. Use a discount rate of 12%. Project A -1 000 000 Project B -800 000 Project C Year -1 200 000 800 000 800 000 800 000 1 700 000 200 000 2 700 000 500 000 700 000 500 000 4 700 000 200 000 650 000 700 000 100 000 650 000 6. 500 000 80 000 400 000

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1.3
Using the projected cash flows project A, B and C respectively, calculate the NPV of
each project. Use a discount rate of 12%.
Project A
Project B
Year
Project C
-1 000 000
-800 000
-1 200 000
1
700 000
200 000
800 000
700 000
500 000
800 000
3
700 000
500 000
800 000
4
700 000
200 000
650 000
5
700 000
100 000
650 000
6.
500 000
80 000
400 000
Transcribed Image Text:1.3 Using the projected cash flows project A, B and C respectively, calculate the NPV of each project. Use a discount rate of 12%. Project A Project B Year Project C -1 000 000 -800 000 -1 200 000 1 700 000 200 000 800 000 700 000 500 000 800 000 3 700 000 500 000 800 000 4 700 000 200 000 650 000 5 700 000 100 000 650 000 6. 500 000 80 000 400 000
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