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Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table ,? Because of past financial difficulties, the company
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 NPV, with rankings of capital at 14.2%. a. Calculate the NPV of each project, using a cost of capital of 142%. 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 acceptablc. a. Calculate the NPV of each project, using a cost of capital of 14.2% Data Table The NFV of project A is sRound to the noarest cent Round to lhe nearest cent.) [Click on the icon located on the top-righl corner of the data table below in arder to copy its contents into a spreadsheet.) Project C $80,700 Project D $180,100 Project A Project B | ? 1? .. 1.1 Initial investment (CF0) Year (t S49.600 Cash inflows (CFt $19,900 $39,200 $59,800 $99,700 $80,500 $59,200 Enter your answer in the answer box and then click Check Answer $19,900 s35.400 $19.900 51.600 S50,100 $19,900 parts remaining
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