Consider the following table illustrating the NPV of three different projects over various time periods, discounted at a rate of 5%. Which Project should be selected? (feel free to use Excel) Project $ Year 0 year 1 year 2 year 3 year 4 year 5 NPV 1 $ |-10.00 8.00 8.00 4.00 2.00 2.00 $discounted -10.00 2 $ -5.00 |12.00 2.00 $discounted -5.00 3 |-6.00 11.00 2.00 2.00 1.00 %24 %24

Essentials Of Investments
11th Edition
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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Consider the following table illustrating the NPV of three different projects
over various time periods, discounted at a rate of 5%. Which Project should be
selected? (feel free to use Excel)
Project $
Year 0 year 1 year 2 year 3 year 4 year 5 NPV
1
|-10.00 8.00
8.00
4.00
2.00
2.00
$discounted -10.00
2
|-5.00
12.00 2.00
$discounted -5.00
3
$
-6.00
11.00 2.00
2.00
1.00
$discounted -6.00
Project 3.
Project 2.
Project 1.
O insufficient information to determine.
Transcribed Image Text:Consider the following table illustrating the NPV of three different projects over various time periods, discounted at a rate of 5%. Which Project should be selected? (feel free to use Excel) Project $ Year 0 year 1 year 2 year 3 year 4 year 5 NPV 1 |-10.00 8.00 8.00 4.00 2.00 2.00 $discounted -10.00 2 |-5.00 12.00 2.00 $discounted -5.00 3 $ -6.00 11.00 2.00 2.00 1.00 $discounted -6.00 Project 3. Project 2. Project 1. O insufficient information to determine.
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