QUESTION 19

What is the net present value of the following three projects if the required rate of return is 10.85%? (Note, the numbers in red are negative)

Year	Project A Cashflows	Project B Cashflows	Project C Cashflows
0	-2,500,000	-3,780,000	-15,000
1	-150,000	-200,000	-40,000
2	220,000	400,000	60,000
3	487,000	800,000	80,000
4	825,000	1,300,000	100,000
5	1,200,000	1,800,000	120,000
6	1,700,000	2,200,000	140,000
NPV

		NPV for Project A is $295,364.59, the NPV for Project B is $384,524.63, and the NPV for Project C is $365,599.12
		NPV for Project A is $80,927.52, the NPV for Project B is $74,681.36, and the NPV for Project C is $215,965.04
		NPV for Project A is $1,782,000.00, the NPV for Project B is $2,520,000.00, and the NPV for Project C is $525,000.00
		NPV for Project A is $809,275.20, the NPV for Project B is $746,813.62, and the NPV for Project C is $21,596.50