FIN400 Financial Management
Capital Budgeting Decision
Cost of Capital		6.0%
Year	0	1	2	3	4	5	Total Receipts
Project 1	(250,000)	85,000	90,000	70,000	80,000	55,000	380,000
Project 2	(500,000)	102,500	135,000	95,000	165,000	200,000	697,500
Project 3	(750,000)	102,500	135,000	175,000	250,000	345,000	1,007,500
Factors		0.9434	0.8900	0.8396	0.7921	0.7473
PV # 1
PV # 2
PV# 3
NPV Project 1
NPV Project 2
NPV Project 3

Here are the calculations:

Capital Budgeting Decision Cost of capital 7.00% Year 0 | 1 | 2 | 3 | 4 | 5 | Total Receipts Project 1 (10,000) 5,300 4,300 3,300 1,874 1,500 16,274 Project 2 (10,000) 1,900 2,700 2,345 7,800 1,529 16,274

Factors 0.9346 0.873 0.816 0.763 0.713 PV # 1 4953.38 3756 2694 1430 1070 13901.96 PV # 2 1775.74 2358 1914 5951 1090 13088.94 NPV Project 1 $3,901.96 NPV Project 2 $3,088.94