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Net Present Value Method, Present Value Indes, and Analysis West Coast Industries Inc. wishes to evaluate three capital investment projects by using the net
Net Present Value Method, Present Value Indes, and Analysis West Coast Industries Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized a Amount to be invested 12 Expansion Notorious Facilities Short Network $489,439 $329,860 $175,030 Annual net cash flows: Year 1 263,000 189,000 108,000 Year 2 245,000 170,000 75,000 Year 3 224,000 151,000 $4,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.57 0.432 0,335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 9 10 0.592 0.558 0.404 0.467 0.361 0.424 0.322 0.386 0.327 0.233 0.264 0.194 0.247 0.162 Required: 1. Assuming that the desired rate of return is 20%, prepare a net present value analysis for each project. Use the present value of $1 table presented above in your computations. If the net present value is negative, enter a negative amount.. EZ Expansion Notorious Facilities Short Network 118.029 Previous
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