Question
Investment required Annual cash inflows Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between four alternative
Investment required Annual cash inflows Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between four alternative uses for the funds as follows: Project W $35,000 $12,000 Project X $35,000 Project Y $35,000 Project Z $35,000 $15,000 Single cash inflow at the end of 6 years $90,000 $111,000 Life of the project 6 years 6 years 6 years 6 years NPV of the project $6,976 ($1,700) $6,070 $17,470 The company's discount rate is 18%. Based on NPV alone, which project(s) would pass through the screen decision process?
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