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Investment cost, yearly revenue, and yearly cost is shown below for 3 mutually exclusive projects under consideration by a firm that uses 10.5% when analyzing
Investment cost, yearly revenue, and yearly cost is shown below for 3 mutually exclusive projects under consideration by a firm that uses 10.5% when analyzing investments. Answer the questions below using the data shown for each project. Note that revenues will be treated positive and cost or out of pocket cash flows as negative in this problem so sign is important when stating calculated values. Project Investment Year 1 2 3 4 5 6 A 1,265,000 Revenue 320,000 430,000 590,000 490,000 430,000 310,000 Cost 110,000 120,000 140,000 150,000 160,000 120,000 B 2,320000 Revenue 510,000 805,000 910,000 870,000 640,000 420,000 Cost 160,000 175,000 145,000 135,000 130,000 95,000 1,390,000 Revenue 180,000 510,000 680,000 540,000 510000 420,000 Cost 160,000 140,000 130,000 150,000 140,000 80,000 a. What is the PW of Project A? b. What is the PW of Project B? c. What is the PW of Project C? d. Which project if any is the preferred alternative using financial based decision making? If none is preferred, use 'None' as your
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