P10–7 Net present value: Independent projects Using a 14% cost of capital, calculate the net present value for each of the independent projects shown in the following table, and indicate whether each is acceptable.

Project A Project B Project C Project D Project E Initial investment (CFO) $26,000 $500,000 $170,000 $950,000 $80,000 Year (t) Cash inflows (CF) 1 $4,000 $100,000 $20,000 $230,000 0 2 4,000 120,000 19,000 230,000 0 3 4,000 140,000 18,000 230,000 0 4 4,000 160,000 17,000 230,000 20,000 5 4,000 180,000 16,000 230,000 30,000 10 68490 4,000 200,000 15,000 230,000 0 7 4,000 14,000 230,000 50,000 4,000 13,000 230,000 60,000 4,000 12,000 70,000 4,000 11,000