Assume that you have an after-tax cost of capital of 10 percent. Compute the net present value of each of the five projects listed in the following table.

Rank the above projects from 1 (best for you) to5

Transcribed Image Text:

After-Tax Cash Flow, End of Year Project A. B. $(10,000) 4,000 $4,000 4,000 (10,000) 6,000 4,000 2,000 (10,000) 2,000 4,000 6,000 (10,000) 12,000 (10,000) 0 12,000