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ABC Company is considering three investment opportunities: Project A would require an immediate cash outlay of $10,000 and would result in cash savings of $3,000
ABC Company is considering three investment opportunities: Project A would require an immediate cash outlay of $10,000 and would result in cash savings of $3,000 each year for 5 years. Project B would require cash outlays of $3,000 per year and would provide a cash inflow of $30,000 at the end of 5 years. Project C would require a cash outlay of $10,000 now and would provide a cash inflow of $30,000 at the end of 5 years. Required: Using a discount rate of 14%, calculate the net present value of each of the above projects to determine which, if any, of the three projects is acceptable. Please indicate which projects are acceptable and why
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