Here is an example of a project preference decision YEARS of Cash Flows Projects 0 1 2
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Here is an example of a project preference decision
YEARS of Cash Flows
Projects 0 1 2 3 4 5 Total Cash Flows
U$ (50,000) $13,000 $15,000 $25,000 $15,000 $15,000 $83,000
V$ (330,000) $150,000 $200,000 $ 100,000 $50,000 $25,000 $525,000
W$ (29,000) $4,000 $5,000 $6,000 $7,000 $5,000 $27,000
X$ (155,000) $95,000 $95,000 $95,000 $95,000 $95,000 $475,000
Y$ (425,000) $225,000 $150,000 $100,000 $50,000 $25,000 $550,000
Z$ (450,000) $50,000 $50,000 $75,000 $150,000 $200,000 $525,000
Which is the best project?Calculate each project's NPV and PI for the answer.
The Hurdle Rate is 6.50%
Related Book For
An Introduction To Statistical Methods And Data Analysis
ISBN: 9781305465527
7th Edition
Authors: R. Lyman Ott, Micheal T. Longnecker
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