Botany Bay, Inc., a maker of casual clothing, is considering four projects. Because of past financial difficulties, the company has a high cost of capital at 15%. Which of these projects would be acceptable under those cost circumstances?

a. Calculate the NPV of each project, using a cost of capital of 15%.
b. Rank acceptable projects by NPV.
c. Calculate the IRR of each project, and use it to determine the highest cost of capital at which all of the projects would beacceptable.

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Project A Project B Project Projet D rojcct Projcct C Projct D Initial investment (CFo) S50,000 $100,000 $80,000 180,000 Ycar (t) Cash inflows (CF) $20,000 $35,000 $20,000 $100,000 20,000 50,000 40,000 80,000 20,000 0,000 60,000 60,000