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Monson Company is considering three investment opportunities with cash flows as described below: Project A: Cash investment now $15,000 Cash inflow at the end of

Monson Company is considering three investment opportunities with cash flows as described below:

Project A:

Cash investment now

$15,000

Cash inflow at the end of 5 years

$21,000

Cash inflow at the end of 8 years

$30,000

Project B:

Cash investment now

$11,000

Annual cash outflow for 5 years

$3,000

Additional cash inflow at the end of 5 years

$25,000

Project C:

Cash investment now

$21,000

Annual cash inflow for 4 years

$8,000

Cash outflow at the end of 3 years

$10,000

Additional cash inflow at the end of 4 years

$10,000

Required: Compute the net present value of each project assuming Monson Company uses a 12% discount rate.

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