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		$	(65,000	)		$	(80,000	)		$	(160,000	)		$	(160,000	)		$	(320,000	)
Amount of net cash return	1			13,000				0				51,200				16,000				96,000
	2			13,000				0				51,200				32,000				96,000
	3			13,000				32,000				51,200				48,000				48,000
	4			13,000				32,000				51,200				64,000				48,000
	5			13,000				32,000				51,200				80,000				48,000
Per year	6-10			13,000				19,200				0				0				48,000
NPV (14% discount rate)			$	2,810			$	?			$	?			$	?			$	9,420
Present value ratio				1.04				?				?				?				?

rev: 12_21_2016_QC_CS-72735

2.

value: 5.00 points

Required information

Required:

a. Calculate the net present value of projects B, C, and D, using 14% 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.)