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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
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. a. Calculate the NPV of each project, using a cost of capital of 14.3%. Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Project A Project B Project C Project D Initial investment (CFO) $50,900 $100,300 $80,900 $179,000 Year (t) Cash inflows (CF) 123 $19,500 $35,700 $19,000 $99,600 2 $19,500 $50,300 $40,000 $80,300 $19,500 $50,700 $59,800 $59,800 -
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