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[The following information applies to the questions displayed below.] The following capital expenditure projects have been proposed for management's consideration at Scott Inc. for the

[The following information applies to the questions displayed below.] 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 $ (51,000 ) $ (60,000 ) $ (104,000 ) $ (113,000 ) $ (220,000 )
Amount of net cash return 1 10,300 0 33,300 10,400 63,000
2 10,300 0 33,300 20,800 63,000
3 10,300 20,800 33,300 31,200 31,500
4 10,300 20,800 33,300 41,600 31,500
5 10,300 20,800 33,300 52,000 31,500
Per year 6-10 10,300 12,500 0 0 31,500
NPV (12% discount rate) $ 7,197 $ ? $ ? $ ? $ 11,220
Present value ratio 1.14 ? ? ? ?

Required: a. Calculate the net present value of projects B, C, and D, using 12% 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.)

c-2. $318,000 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

c-3. $534,000 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

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