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A & B Enterprises is trying to select the best investment from the following alternatives. Each investment has an initial cost of $100,000. Machine Cost

A & B Enterprises is trying to select the best investment from the following alternatives. Each investment has an initial cost of $100,000.

Machine Cost

A: $100,000

B: $100,000

C: $100,000

Cash Inflows Each Year:

Year 1

$ 10,000

$ 50,000

$ 0

Year 2

$ 20,000

$ 40,000

$ 0

Year 3

$ 30,000

$ 30,000

$ 45,000

Year 4

$ 40,000

0

$ 55,000

Year 5

$ 50,000

0

$ 60,000

SOLVE FOR THE NET PRESENT VALUE FOR EACH PROJECT USING A DISCOUNT RATE OF 10%.

Answer 1: NPV for Project A =

Answer 2: NPV for Project B =

Answer 3: NPV for Project C =

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