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Assume that Metlock Inc. has a capital budget of $206,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen,
Assume that Metlock Inc. has a capital budget of $206,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen, assuming k is 11 percent. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places e.g. 58,971.25.)
Project | Initial CF | CF1 | CF2 | CF3 | |||||
A | -97,500 | 77,500 | 76,500 | 0 | |||||
B | -69,000 | 46,500 | 57,500 | 67,500 | |||||
C | -108,500 | 51,500 | 97,500 | 77,500 |
NPVAB | $ | ||
NPVAC | $ | ||
NPVBC | $ | ||
Projects A aloneProjects B aloneProjects C aloneProjects A & BProjects A & CProjects B & C should be chosen. |
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