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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 $ (59,000 ) $ (68,000 ) $ (136,000 ) $ (136,000 ) $ (272,000 )
Amount of net cash return 1 13,400 0 46,000 13,600 90,000
2 13,400 0 46,000 27,200 90,000
3 13,400 29,000 46,000 40,800 45,500
4 13,400 29,000 46,000 54,400 45,500
5 13,400 29,000 46,000 68,000 45,500
Per year 6-10 13,400 18,000 0 0 45,500
NPV (18% discount rate) $ 1,221 $ ? $ ? $ ? $ 2,155
Present value ratio 1.02 ? ? ? ?

Required:

a. Calculate the net present value of projects B, C, and D, using 18% as the cost of capital for Scott, Inc. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Project Net Present Value
B
C
D

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.)

Project Present Value Ratio
B
C
D
E

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