Question: Y 3 : $ 6 0 0 , 0 0 0 Y 4 : $ 4 0 0 , 0 0 0 Y 5 :

Y3: $600,000
Y4: $400,000
Y5: $200,000
Proposal Z: 22% Discount Rate
Y1: $300,000
Y2: $500,000
Y3: $700,000
Y4: $900,000
Y5: $1,100,000
Calculate the NPV of each of the 4 proposals
and select the proposal the company should
select.
Proposal W
Proposal X
Proposal Y
Proposal Z
 Y3: $600,000 Y4: $400,000 Y5: $200,000 Proposal Z: 22% Discount Rate

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