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Monson Company is considering three investment opportunities with cash flows as described below (Ignore income taxes): Project A: Cash investment now $ 13,700 Cash inflow
Monson Company is considering three investment opportunities with cash flows as described below (Ignore income taxes): Project A: Cash investment now $ 13,700 Cash inflow at the end of 5 years $ 21,400 Cash inflow at the end of 8 years $ 21,400 Project B: Cash investment now $ 11,900 Annual cash outflow for 5 years $ 3,400 Additional cash inflow at the end of 5 years $ 21,700 Project C: Cash investment now $ 20,400 Annual cash inflow for 4 years $ 10,100 Cash outflow at the end of 3 years $ 4,700 Additional cash inflow at the end of 4 years $ 15,600 Required: Compute the net present value of each project assuming Monson Company uses a 14% discount rate. (Use Table 12B.1 and Table 12B.2.) (Negative amounts should be indicated by a minus sign. Round "PV factors" to 3 decimal places. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Net Present Value Project A? Project B? Project C
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