STU Corp is evaluating three investment proposals:
•Project A:
oInitial Investment: $(320,000)
oCash Inflows: $70,000, $90,000, $80,000, $70,000 over four years
•Project B:
oInitial Investment: $(340,000)
oCash Inflows: $80,000, $100,000, $90,000, $80,000 over four years
•Project C:
oInitial Investment: $(360,000)
oCash Inflows: $90,000, $110,000, $100,000, $90,000 over four years
Requirements:
1.Calculate the NPV for each project using a 5% discount rate.
2.Determine the PI for each project.
3.Prepare a projected cash flow statement for the selected project for the next four years.