Analyze Capital Projects and Provide Recommendations Randolph Inc. is considering the following three capital project proposals. Proposal A Proposal B Proposal C. Initial investment $ 350,000 $280,000 $140, 000 Annual net cash flows $105,000 $88, 200 $56, 000 Disinvestment $0 $0 $0 Life 5 years 4 years 3 years The company initially screens projects considering (1) a payback period of 2.5 years or less and (2) a positive net present value using a discount rate of 10% b. Compute the net present value for each proposal and determine whether each proposal passes the initially screening based on your results. Note: Round your answer to the nearest dollar. Proposal A Proposal B Proposal C Net present value of all cash flows Answer Answer Answer Accept or Reject Answer Accept Answer Reject Answer Reject

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Analyze Capital Projects and Provide Recommendations Randolph Inc. is considering the following three capital project proposals. Proposal A Proposal B Proposal C. Initial investment $ 350,000 $280,000 $140, 000 Annual net cash flows $105,000 $88, 200 $56, 000 Disinvestment $0 $0 $0 Life 5 years 4 years 3 years The company initially screens projects considering (1) a payback period of 2.5 years or less and (2) a positive net present value using a discount rate of 10% b. Compute the net present value for each proposal and determine whether each proposal passes the initially screening based on your results. Note: Round your answer to the nearest dollar. Proposal A Proposal B Proposal C Net present value of all cash flows Answer Answer Answer Accept or Reject Answer Accept Answer Reject Answer Reject 

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