The Perrysburg Corp. currently earns an average rate of return of 30% on its total investment. The board of directors is considering the three proposals whose cash flows are specified below. Which proposals are acceptable if the board of directors has set a target MARR of 25%. Use the NPV method. (10 points)

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End of Year 0 1 2 3 4 Proposal A -$50,000 15,000 15,000 15,000 15,000 Proposal B -$75,000 30,000 30,000 30,000 30,000 Proposal C -$100,000 35,000 35,000 35,000 35,000 End of Year 0 1 2 3 4 Proposal A -$50,000 15,000 15,000 15,000 15,000 Proposal B -$75,000 30,000 30,000 30,000 30,000 Proposal C -$100,000 35,000 35,000 35,000 35,000

Answer rating: 100% (QA)

AS NPV of all the projects are negative at 25 MARR hence no project ... View the full answer