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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 | $ | (50,000 | ) | $ | (50,000 | ) | $ | (100,000 | ) | $ | (100,000 | ) | $ | (200,000 | ) | |||||
Amount of net cash return | 1 | 10,000 | 0 | 32,000 | 10,000 | 60,000 | |||||||||||||||
2 | 10,000 | 0 | 32,000 | 20,000 | 60,000 | ||||||||||||||||
3 | 10,000 | 20,000 | 32,000 | 30,000 | 30,000 | ||||||||||||||||
4 | 10,000 | 20,000 | 32,000 | 40,000 | 30,000 | ||||||||||||||||
5 | 10,000 | 20,000 | 32,000 | 50,000 | 30,000 | ||||||||||||||||
Per year | 6-10 | 10,000 | 12,000 | 0 | 0 | 30,000 | |||||||||||||||
NPV (14% discount rate) | $ | 2,161 | $ | ? | $ | ? | $ | ? | $ | 5,887 | |||||||||||
Present value ratio | 1.04 | ? | ? | ? | ? | ||||||||||||||||
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