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Net present value. Independent projects Using a 14% 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. Project A Project B Project C Project D Project E Initial investment $ 26,000 $ 500,000 $ 170,000 $ 950,000 $ 80,000 Year Cash inflows 1 $ 4,000 $ 100,000 $ 20,000 $ 230,000 $ 2 4,000 120,000 19,000 230,000 3 4,000 140,000 18,000 230,000 4 4,000 160,000 17,000 230,000 20,000 5 4,000 180,000 16,000 230,000 30,000 6 4,000 200,000 15,000 230,000 7 4,000 14,000 230,000 50,000 8 4,000 13,000 230,000 60,000 9 4,000 12,000 70,000 10 4,000 11,000 Solution Project A Discount rate Number of years 14% 10 26,000 4,000 CF CF 1-10 -$ $ PV of cash inflows NPV of project A The project will be Project B Discount rate CF CF 1 CF 2 CF 3 CF 4 CF 5 CF 6 G la la la la la la 14% 500,000 100,000 120,000 140,000 160,000 180,000 200,000 PV of cash inflows NPV of project B The project will be Project C Discount rate -$ $ $ CF CF| CF 2 CF 3 CF 4 CF 5 CF 6 CF1 CF 8 CF 9 AAAAAAAA 14% 170,000 20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 CF 10 PV of cash inflows NPV of project C The project will be Project D Discount rate Number of years CFO CF 1-8 14% 8 950,000 230,000 -$ $ PV of cash inflows NPV of project D The project will be Project E Discount rate 14% 80,000 CF. CF 1 CF2 G la la la la la 20,000 30,000 CF 3 CF 4 CF 5 CF 6 CF 1 CF 8 - $ $ $ 50,000 60,000 70,000 CF, PV of cash inflows NPV of project E The project will be