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5 . 3 Net Present Value of Project B and Project C . Your answers must indude the calculations of the present values and net
Net Present Value of Project B and Project C Your answers must indude the calculations of the present values and net present values.
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Internal Rate of Retum expressed to two decimal places of Project B Your answer must include two net present value calculations using consecutive cost of capital rates and interpolation.
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INFORMATION
The following information relates to three possible capital expenditure projects. Because of capital rationing, only one project can be accepted.
tableProject AProject BProject CInvestmentRRRtableExpected scrap valuenot included in the figures belowRDepreciationRRRExpected net cash flows:,RRREnd of year
The company estimates that its cost of capital is The useful life of each project is five years.
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