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Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each isacceptable.

Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each isacceptable.

Essentials Of Investments
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
Section: Chapter Questions
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Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each isacceptable. Project A Project B Project C Project D Project E Initial investment (CF) $26,000 S500,000 S170,000 $950,000 S80,000 Year (t) Cash inflows (CF,) $4,000 $100,000 $20,000 19,000 $230,000 230,000 230,000 1 4,000 120,000 140,000 160,000 3 4,000 18,000 17,000 4,000 230,000 20,000 30,000 4 4,000 180,000 16,000 230,000 230,000 230,000 230,000 4,000 200,000 15,000 7. 4,000 14,000 50,000 4,000 13,000 60,000 9. 4,000 12,000 70,000 10 4,000 11,000
Transcribed Image Text:Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each isacceptable. Project A Project B Project C Project D Project E Initial investment (CF) $26,000 S500,000 S170,000 $950,000 S80,000 Year (t) Cash inflows (CF,) $4,000 $100,000 $20,000 19,000 $230,000 230,000 230,000 1 4,000 120,000 140,000 160,000 3 4,000 18,000 17,000 4,000 230,000 20,000 30,000 4 4,000 180,000 16,000 230,000 230,000 230,000 230,000 4,000 200,000 15,000 7. 4,000 14,000 50,000 4,000 13,000 60,000 9. 4,000 12,000 70,000 10 4,000 11,000
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