NPV, with rankingsBotany 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%.

The NPV of project A is $ 4,731.10.(Round to the nearest cent.)

Is project A acceptable?(Select the best answer below.)

A.

Yes

Project A

Project B

Project C

Project D

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Initial investment

(CF 0CF0)

$50,700

$99,300

$80,500

$179,000

Year

(t)

Cash inflows

(CF Subscript tCFt)

1

$19,900

$ 37,000

$20,300

$ 99,600

2

$ 19,900

$ 50,000

$40,800

$79,500

3

$19,900

$ 50,000

$ 60,500

$59,100

The NPV of project B is $ . (Round to the nearest)