Question: A15 PI B D What is the Net Present Value? 2 Why is one investment better than another? Rank to pursue as 1, 2, 3

A15 PI B D What is the Net Present Value? 2 Why is one investment better than another? Rank to pursue as 1, 2, 3 ABC Company's Project Comparision (Rounded) Project 1 Project 2 Project 3 5 Purchase Price $80,000 $175,000 $22,700 6 Required Rate of Return 6% 8% 12% 7 Time Period (years) 3 5 2 8 Cash Flows- Year 1 $48,000 $85,000 $13,000 9 Cash Flows- Year 2 $36,000 $74,000 $13,000 10 Cash Flows- Year 3 $22,000 $38,000 N/A 11 Cash Flows- Year 4 N/A $26,800 N/A 12 Cash Flows- Year 5 N/A $19,000 N/A 14 NPP 15 P 16 Ranking 17

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