13) The following details are provided by Doppler Company $2.020,000 Initial investment Discount rate Yearly cash flows 129 $210,000 $414,000 $414,000 $414,000 $210,000 Present Value of $1: 10% 0.90 0.826 11 0.001 0.812 0.731 0.659 0.593 12 0.99 0.797 0.712 0.61 0.567 13 0.88 0.783 0.693 0.618 0.543 0.6 0.621 5 Calculate the NPV of the project. A) $(959,500) B) $(825,370) C) $1,015.050 D) $252,500 13) Under conditions of limited resources, when a company is comparing several investments with different amounts of initial cost, the decision should be made on the basis of the A) highest total cash inflows B) shortest payback period C) highest profitability index D) highest NPV 14) The following information is provided by Pemberton Systems: Initial investment PV of cash inflows Payback period (years) NPV of project Project A $434,000 $572,000 3.6 $138,000 Project $200,000 $396,000 3.2 $196,000 Project $568,000 $808,000 4.0 $240,000 Project D $510,000 $402,000 2.0 $108,000 Which project has the highest profitability index? A) Project A B) Project B C) Project C D) Project D