Use the data in Problem and Case 6.7 to calculate the net present value for each project using a discount rate of 12%. For simplicity, assume the cash flows occur at the end of the year, except for the original cost of the project.
In problem

Projects Net profit increases before depreciation Cost Salvage value Economic life in years $42,000 50,000$80,000 $250,000 $500,000 $40,000 20 16,000 $25,000 $35,000 $10,000 $50,000 10