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STU Corp is evaluating three investment proposals: Project A: Initial Investment: $(320,000) Cash Inflows: $70,000, $90,000, $80,000, $70,000 over four years Project B: Initial Investment:
STU Corp is evaluating three investment proposals:
- Project A:
- Initial Investment: $(320,000)
- Cash Inflows: $70,000, $90,000, $80,000, $70,000 over four years
- Project B:
- Initial Investment: $(340,000)
- Cash Inflows: $80,000, $100,000, $90,000, $80,000 over four years
- Project C:
- Initial Investment: $(360,000)
- Cash Inflows: $90,000, $110,000, $100,000, $90,000 over four years
Requirements:
- Calculate the NPV for each project using a 5% discount rate.
- 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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