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The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5.

The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the upcoming budget year: Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.)

Project
Year(s) A B C D E
Initial investment 0 $ (55,000 ) $ (60,000 ) $ (120,000 ) $ (120,000 ) $ (240,000 )
Amount of net cash return 1 11,000 0 38,400 12,000 72,000
2 11,000 0 38,400 24,000 72,000
3 11,000 24,000 38,400 36,000 36,000
4 11,000 24,000 38,400 48,000 36,000
5 11,000 24,000 38,400 60,000 36,000
Per year 6-10 11,000 14,400 0 0 36,000
NPV (14% discount rate) $ 2,377 $ ? $ ? $ ? $ 7,065
Present value ratio 1.04 ? ? ? ?

$366,000 is available for investment? (You may select more than one answer. Single-click the box with the question mark to produce a checkmark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Project A

Project B

Project C

Project D

Project E

$610,000 is available for investment? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

  • Project A
  • Project B
  • Project C
  • Project D
  • Project E

We know that:

Project Net Present Value of B, C, D are correct:

B$8,551

C$11,831

D$(7,121)

Present value ratio for projects B, C, D, and E are the following

B 1.14

C 1.10

D 0.94

E 1.03

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