Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 9%. The net present value (NPV) of project A is ________. TABLE 4 Project Year 0. Year 1. Year 2. Year 3. Year 4. Year 5 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -15000 6000 7000 6000 6000 6000 B -15000 7000 7000 7000 7000 7000 C -18000 12000. 2000 2000 2000 2000

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Q: Problem I (1.5P) Consider the investment projects in the table below, all of which have a four-year…

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A: The net present value is the present value of the project's cash flows less the initial costs.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.