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STU Corp is evaluating three investment proposals: Project A: Initial Investment: $(250,000) Cash Inflows: $70,000, $90,000, $80,000, $60,000 over four years Project B: Initial Investment:

STU Corp is evaluating three investment proposals:

  • Project A:
    • Initial Investment: $(250,000)
    • Cash Inflows: $70,000, $90,000, $80,000, $60,000 over four years
  • Project B:
    • Initial Investment: $(270,000)
    • Cash Inflows: $80,000, $100,000, $90,000, $70,000 over four years
  • Project C:
    • Initial Investment: $(300,000)
    • Cash Inflows: $90,000, $110,000, $100,000, $80,000 over four years

Requirements:

  1. Calculate the NPV for each project using a 6% discount rate.
  2. Determine the PI for each project.
Prepare a projected cash flow statement for the selected project for the next four years.

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