Question
GHI Corp is considering three investment opportunities with the following cash flows: Cash Flows Year 0 Year 1 Year 2 Year 3 Year 4 Project
GHI Corp is considering three investment opportunities with the following cash flows:
Cash Flows | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
Project A | $(250,000) | $70,000 | $85,000 | $80,000 | $60,000 |
Project B | $(300,000) | $75,000 | $95,000 | $85,000 | $70,000 |
Project C | $(350,000) | $80,000 | $100,000 | $90,000 | $80,000 |
Requirements:
- Calculate the NPV for each project using a discount rate of 9%.
- Determine the PI for each project.
- Prepare a comparative statement of retained earnings for the selected project.
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Mechanics Of Materials
Authors: Russell C. Hibbeler
11th Edition
0137605528, 9780137605521
