Question: C. NPV Problem 5. You have a salad & juice shop. You are trying to improve efficiency, so you are looking at three different projects:

 C. NPV Problem 5. You have a salad & juice shop.

C. NPV Problem 5. You have a salad & juice shop. You are trying to improve efficiency, so you are looking at three different projects: A. Cold press juice machine. B. Two-year automatic invoice system. C. Customized machine for sandwiches and muffins. The cost of capital for all alternatives is 8%. Compute the NPV of the three projects, whose cash flows are described in the table below. What project do you think will be the most profitable option for your business? (Remember the NPV rule). (1.5 points) NPV PROJECTS A B T=0 T=1 -1,000 500 -1,500 1,200 -3,000 1,000 T=2 200 400 1,000 T=3 T=4 T=5 200 200 200 0 0 0 1,500 500 500

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