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A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and
A company is considering three alternative investment projects with different net cash flows. The present value of net cash
flows is calculated using Excel and the results follow.
Potential Projects
Present value of net cash flows excluding initial investment
Initial investment
a Compute the net present value of each project.
b If the company accepts all positive net present value projects, which of these will it accept?
c If the company can choose only one project, which will it choose on the basis of net present value?
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Compute the net present value of each project.
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