3 mutually exclusive projects with a cost of capital of 14%

Project X Project Y Project Z

Initial investment $78,000 $52,000 $66,000

Year Cash Inflows

1 $17,000 $28,000 $15,000

2 $25,000 $38,000 $15,000

3 $33,000 $15,000

4 $41,000 $15,000

5 $15,000

6 $15,000

7 $15,000

8 $15,000

a.) Calculate the NPV for each project & rank them in descending order based on NPV

b.) Calculate & Rank them according to ANPV

c.) Which project would you implement based on ANPV?