Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table,

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. Because of the company's risk profile, it has a high

14.9%

cost of capital.a.Calculate the NPV of each project, using a cost of capital of

14.9%.

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

14.9%.

The NPV of project A is

$nothing.

(Round to the nearest cent.)

Is project A acceptable?(Select the best answer below.)

A.

No

B.

Yes

The NPV of project B is

$nothing.

(Round to the nearest cent.)

Is project B acceptable?(Select the best answer below.)

A.

No

B.

Yes

The NPV of project C is

$nothing.

(Round to the nearest cent.)

Is project C acceptable?(Select the best answer below.)

A.

No

B.

Yes

The NPV of project D is

$nothing.

(Round to the nearest cent.)

Is project D acceptable?(Select the best answer below.)

A.

No

B.

Yes

b.Rank acceptable projects by NPV.

Project C

Project D

Project A

Project B

is ranked number 1.(Select from the drop-down menu.)

Project C

Project B

Project D

Project A

is ranked number 2.(Select from the drop-down menu.)

Project C

Project A

Project B

Project D

is ranked number 3.(Select from the drop-down menu.)

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.

The IRR of project A is

nothing%.

(Round to two decimal places.)The IRR of project B is

nothing%.

(Round to two decimal places.)The IRR of project C is

nothing%.

(Round to two decimal places.)The IRR of project D is

nothing%.

(Round to two decimal places.)

What is the highest cost of capital at which all of the projects would be acceptable?(Choose the correct answer.)

A.

11.70%

B.

16.33%

C.

17.63%

D.

i X Data Table in order to copy the contents of the data table below into a (Click on the icon here spreadsheet.) Project A $50,700 Project D $180,100 Initial investment (CF) Year (t) Project B Project C $99,700 $79,700 Cash inflows (CFt) $35,800 $19,300 $50,300 $39,500 $50,000 $59,000 1 2 $21,000 $21,000 $21,000 $100,800 $80,400 $59,100 3 Print Done