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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 $ (63,000 ) $ (62,000 ) $ (138,000 ) $ (152,000 ) $ (304,000 )
Amount of net cash return 1 14,000 0 50,000 15,200 97,000
2 14,000 0 50,000 30,400 97,000
3 14,000 31,000 50,000 45,600 50,000
4 14,000 31,000 50,000 60,800 50,000
5 14,000 31,000 50,000 76,000 50,000
Per year 6-10 14,000 19,000 0 0 50,000
NPV (16% discount rate) $ 4,665 $ ? $ ? $ ? $ 13,115
Present value ratio 1.07 ? ? ? ?

Required:

a. Calculate the net present value of projects B, C, and D, using 16% as the cost of capital for Scott, Inc. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

b. Calculate the present value ratio for projects B, C, D, and E. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Which projects would you recommend for investment if the cost of capital is 16% and

c-1. $155,000 is available for investment?

Project A

Project B

Project C

Project D

Project E

c-2. $462,000 is available for investment? (Select all that apply.)

Project A

Project B

Project C

Project D

Project E

c-3. $762,000 is available for investment? (Select all that apply.)

Project A

Project B

Project C

Project D

Project E

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