QUESTION 1

the following problems using MicrosoftExcel:

Calculate the NPV for each project and determine which project should be accepted.

Project A Project B Project C Project D

Initial Outlay 105,000.00 99,000.00 10,000.00 85,000.00

Inflow year 153,000.00 51,000.00 25,000.00 45,000.00

Inflow year 2 50,000.00 47,000.00 55,000.00 50,000.00

Inflow year 3 48,000.00 41,000.00 15,000.00 30,000.00

Inflow year 4 30,000.00 52,000.00 21,000.00 62,000.00

Inflow year 5 35,000.00 40,000.00 35,000.00 68,000.00

Rate 7% 10% 13% 18%

NPV =

Answer: