Calculate the npv for each of the projects

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Using a 14 percent cost of capital, calculate the NPV for each of the projects shown in the following table and indicate whether or not each is acceptable.

  Project A Project B Project C Project D Project E

Initial Cash Outflow (CFo)

Year (t)

$20,000

$600,000

$150,000

Cash Inflows(CFi)

$760,000

$100,000

1

$ 3,000

$120,000

$18,000

$185,000

$0

2

3,000

145,000

17,000

185,000

0

3

3,000

170,000

16,000

185,000

0

4

3,000

190,000

15,000

185,000

25,000

5

3,000

220,000

15,000

185,000

36,000

6

3,000

240,000

14,000

185,000

0

7

3,000

 

13,000

185,000

60,000

8

3,000

 

12,000

185,000

72,000

9

3,000

 

11,000

 

84,000

10

3,000

 

10,000

 

 

Reference no: EM131328755

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