Botany Bay inc a maker of casual clothing is considering four projects shown in the following table because of past financial difficulties the company has a high cost of capital at 14.2%. a: calculate the NPV of each project using a cost of capital of 14.2%. 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.

project A project B project C project D

Table initial investment (CFo) 50,400 100,200 79,700 180,200

year (t) Cash inflows (CFt)

1 20,600 36,300 20,400 99,300

2 20,600 51,900 40,600 80,300

3 20,600 51,700 60,700 60,300