Question: ABC Company is planning to undertake three different projects requiring initial investment of (44 million) for project A. (40 million) for project B and (44
ABC Company is planning to undertake three different projects requiring initial investment of (44 million) for project A. (40 million) for project B and (44 million) for project C. the three different project will result in cash inflows in accordance with the following table: (All figures in SMillion) A B Initial cash outlay 44 40 44 Net cash flow Year 1 16 8 12 Year 2 14 10 12 Year 3 12 12 12 Year 4 10 14 12 Year 5 100 16 12 60 60 60 Requirement: I Calculate the net present value (NPV) of each alternative if the cost of capital is 10%
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