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NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table,?. Because of past financial difficulties,
NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table,?. Because of past financial difficulties, the company has a high cost of capital at 14.3% a. Calculate the NPV of each project, using a cost of capital of 14.3%. b. Rank acceptable projects by NPV c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable 1Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A $49,100 Project B $100,500 Project C $80,400 Project D $180,600 initial investment (CF) Year (t) $20,500 $20,500 $20,500 Cash inflows (CF) $36,800 $51,400 $50,600 $20,100 $40,300 $59,200 $100,400 $80,100 $60,200
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