Question
Sanchez Corporation is considering three long-term capital investment proposals. Relevant data on each project are as follows. Brown Red Yellow Capital investment $190,570 $221,360 $251,750
Sanchez Corporation is considering three long-term capital investment proposals. Relevant data on each project are as follows.
Brown Red Yellow Capital investment
$190,570 $221,360 $251,750 Annual net income:
Year 1 25,478 20,021 26,369
2 16,410 20,021 24,488
3 13,278 20,021 23,046
4 10,170 20,021 17,117
5 8,236 20,021 20,364
Total $ 73,572 $100,105 $111,384
Salvage value is expected to be zero at the end of each project. Depreciation is computed by the straight-line method. The companys minimum rate of return is the companys cost of capital which is 12%. Compute net present value for each project. please show me how using aTI BA II Plus
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