QUESTION NEEDING ANSWERED:

Compare and contrast the three projects.Why might you choose Project A? Why might you choose Project B? Why might you choose Project C?

USE THE FOLLOWING TABLES TO ANSWER:

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Project A Project B Project C Initially invest $40,000 Initially invest $40,000 Initially invest $40,000 End Annual of Cumulative, at Annual Cumulative, Annual Cumulative, Cash Flow Year end of Year "[" at end of Cash Flow Year ; Cash Flow at end of Year 1 $5,000 5,000 $15,000 15,000 $1,000 1,000 $5,000 10,000 $10,000 25,000 $5,000 6,000 3 $5,000 15,000 $6,000 31,000 $14,000 20,000 $5,000 20,000 $4,000 35,000 $25,000 45,000 5 $5,000 25,000 $2,000 37,000 $500 45,500 6 $5,000 30,000 $2,000 39,000 45,500 7 $5,000 35,000 $1,000 40,000 0 45,500 $5,000 40,000 0 40,000 O 45,500 9 $5,000 45,000 0 40,000 0 45,500 10 $5,000 50,000 0 40,000 0 45,500 Payback Period Comparison Project Years to Payback Gross Cumulative Cash Return Net Cumulative Cash Return A 8 50,000 10,000 B 7 40,000 0 C 3.8 45,500 5,500 Compare and contrast the three projects. Why might you choose Project A? Why might you choose Project B? Why might you choose Project C