$1)$ Monson Company is considering three investment opportunities with cash flows as described below:

 

 

Project A: Cash investment now $$15,000$

Cash inflow at the end of $5$ years $$21,000$

Cash inflow at the end of $8$ years $$30,000$

$$ 

 

Project B: Cash investment now $$11,000$

Annual cash outflow for $5$ years $$3,000$

Additional cash inflow at the end of $5$ years $$25,000$

$$ 

 

Project C: Cash investment now $$21,000$

Annual cash inflow for $4$ years $$8,000$

Cash outflow at the end of $3$ years $$10,000$

Additional cash inflow at the end of $4$ years $$10,000$

$$ 

 

Required:

Compute the net present value of each project assuming Monson Company uses a $12\%$ discount rate.

Answer rating: 100% (QA)

To compute the net present value NPV of each project we can use the following formula NPV Initial In... View the full answer