problem No 1

A' SHARQIYAH UNIVERSITY Problem No 1: (15 Mark Suppose a company has the following three projects and limits it capital budget to $50,000. Projects Present Value of Cash Inflows Initial Investment A $40,000 $25,000 B. 37,500 25,000 50,000 C 70,000 1. Calculate the projects' NPVs. 2. Calculate the projects' PIs. 3. Which project(s) should the company choose? Why? Problem No 2: (14 Marks) Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each. WE Address -- EN toe. I ho insert fo b - 14 fs 14 II ( & = % 0 $ 9 7 8 6 4 5 6 E R T L E G H