Business decision case A Lloyd's Company wishes to invest USD 750,000 in capital projects that have a minimum expected rate of return of 14 per cent. The company is evaluating five proposals. Acceptance of one proposal does not preclude acceptance of any of the other proposals. The company's criterion is to select proposals that meet its 14 per cent minimum required rate of return. The relevant information related to the five proposals is as follows:

Cash outlay

A $ 150,000

B $300,000

C $375,000

D $450,000

E $150,000

Expected after tax net cash inflow

A $45,000, B. $$60,000, C. $82,500,

D. $78,000, E.$31,500

Expected life of proposal(years)

A. 5, B. 8, C. 10, D, 12, E. 10

a. Compute the net present value of each of the five proposals. b. Which projects should be undertaken? Why? Rank them in order of desirability.