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Because of the company's risk NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table,
Because of the company's risk NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table, profile, it has a high 14.3% cost of capital. a. Calculate the NPV of each project, using a cost of capital of 14.3%. b. Rank acceptable projects by NPV. c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable. a. Calculate the NPV of each project, using a cost of capital of 14.3% i Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Project A $50,300 Project B $99,000 Project C $80,900 Project D S180,700 Initial investment (CF) Year (1) 1 $99,300 $19,900 $19,900 $19,900 Cash inflows (CF) $36,800 $20,600 $52,000 $40,600 $50,600 $60,100 2 $80,800 $59,700 3
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