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How are the columns getting those numbers? pleases show work of how to net value with a 10% discount rate b) Net present value Project
How are the columns getting those numbers? pleases show work of how to net value with a 10% discount rate
b) Net present value Project D cash flows Project A Cash flows Project B Cash flows Project C pve10% Pve10% 100,000 $-100,000.00 50,000 $ 45,454.55 40,000 $ 33,057.85 0,000 $ 22,539.44 cash flows py0% PV@10% Year 0 -100,000 -100,000.00 10,000$9,090.91 20,000 $ 16,528.93 330,000$ 22,539.44 40,000$ 27,320.54 50,000 31.046.07 NPV S 6525.88 100,000 S-100,000.00 25,000 $ 22,727.27 25,000 $ 20,661.16 25,000$ 18,782.87 5,000 $ 17,07534 25,000 $ 15,523.03 S -5,23033 100,000 S-100,000.00 5,000 $ 33,809 17 5,000$ 37,565 74 0,000 S 37.255.28 30 19 NPV # $ 1,051.84 NPV 8,6 Where NPV Present Value of Cash inflow Present Value of Cash Outflow Ranking A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative involves an initial outlay of $100,000. Their cash flows follow: Year 2 4 $10,000 $50,000 $25,000 S 0 20,00040,00025,000 30,000 30,000 25,000 45,000 40,000 50,000 0 25,000 55,000 0 25,00060,000 Evaluate and rank each alternative based on a) payback period, b) net present value (use a 1 0% discount rate) Step by Step Solution
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