Using an 8% cost of capital, calculate the net present value for each of the independent...

 

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Using an 8% 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. Year 0 1 2 3 4 S 6 7 8 9 10 11 A <<-£125 25 45 70 40 Cash flows (CF) (in thousands) D B -£750 C -£150 -£350 110 120 140 80 90 42 90 110 130 110 90 70 60 60 35 10 115 70 52 16 14 5 3 E -£1,250 80 140 125 145 170 240 310 100 80 45 56 Using an 8% 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. Year 0 1 2 3 4 S 6 7 8 9 10 11 A <<-£125 25 45 70 40 Cash flows (CF) (in thousands) D B -£750 C -£150 -£350 110 120 140 80 90 42 90 110 130 110 90 70 60 60 35 10 115 70 52 16 14 5 3 E -£1,250 80 140 125 145 170 240 310 100 80 45 56

Answer rating: 100% (QA)

Year 1 2 3 4 5 6 7 8 9 10 11 PV factor 8 09259 08573 07938 07350 06806 06302 058... View the full answer