Question: Project A Project B Project C Project D Project E Today (20,000) (30,000) (8,000) (3,000) (6,000) Year 1 10,000 2,000 1,000 2,000 750 Year 2

Project A Project B Project C Project D Project E

Today (20,000) (30,000) (8,000) (3,000) (6,000)

Year 1 10,000 2,000 1,000 2,000 750

Year 2 5,000 4,000 2,000 2,000 1,500

Year 3 2,500 6,000 3,000 2,000 2,250

Year 4 2,000 8,000 4,000 2,000 3,000

Year 5 1,000 10,000 5,000 2,000 3,750

Year 6 500 12,000 (6,000)

What is the Net Present Value of project E if the cost of capital is 12%?

What is the IRR of project A if the cost of capital is 6%?

What is Project As Profitability Index if the cost of capital is 6%?

What is Project Bs Payback Period?

What is the Crossover Rate between Project B and C?

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