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The company plans to participate in three possible projects. Each of the project requires an initial investment amount $10,000 to be made at the beginning
The company plans to participate in three possible projects. Each of the project requires an initial investment amount $10,000 to be made at the beginning of the year. The following tables provides the information of the projected cash flows for each of three projects: End of year Project A Project B Project C 1 5,000 8,000 2,000 2 3,000 -3,000 3,000 3 -2,000 5,000 4,000 4 5,000 5,000 5,000 The cost of capital for each of project is commonly applied with 10%. Calculate the net present value of each project and decide which project the company should participate in
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