Use the data in Problem and Case 6.7 to calculate the net present value for each project using a discount rate of 12%. For simplicity, assume the cash flows occur at the end of the year, except for the original cost of the project.
In problem

Transcribed Image Text:

Projects Net profit increases before depreciation Cost Salvage value Economic life in years $42,000 50,000$80,000 $250,000 $500,000 $40,000 20 16,000 $25,000 $35,000 $10,000 $50,000 10