Here is an example of a project preference decision

YEARS of Cash Flows

Projects 0 1 2 3 4 5 Total Cash Flows

U$ (50,000) $13,000 $15,000 $25,000 $15,000 $15,000 $83,000

V$ (330,000) $150,000 $200,000 $ 100,000 $50,000 $25,000 $525,000

W$ (29,000) $4,000 $5,000 $6,000 $7,000 $5,000 $27,000

X$ (155,000) $95,000 $95,000 $95,000 $95,000 $95,000 $475,000

Y$ (425,000) $225,000 $150,000 $100,000 $50,000 $25,000 $550,000

Z$ (450,000) $50,000 $50,000 $75,000 $150,000 $200,000 $525,000

Which is the best project?Calculate each project's NPV and PI for the answer.

The Hurdle Rate is 6.50%