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Using a 10% cost of capital, calculate the Net Present Value (NPV) for each of the independent projects shown in the following table, and indicate
Using a 10% cost of capital, calculate the Net Present Value (NPV) for each of the independent projects shown in the following table, and indicate whether each is acceptable.
Solution Project D Discount rate CF0 CF1 CF2 CF3 CF4 CF5 CF6 NPV of project D The project will be \begin{tabular}{|r|} \hline 10% \\ \hline $750 \\ \hline $200 \\ \hline $235 \\ \hline $250 \\ \hline $265 \\ \hline $100 \\ \hline 50 \\ \hline \\ \hline \end{tabular} Project E Discount rate CF0 CF1 CF2 CF3 CF4 CF5 CF6 CF7 CF8 CF9 CF10 NPV of project E The project will be \begin{tabular}{|r|} \hline 10% \\ \hline$1,150 \\ \hline$80 \\ \hline$135 \\ \hline$190 \\ \hline$255 \\ \hline$315 \\ \hline$380 \\ \hline$275 \\ \hline$100 \\ \hline$45 \\ \hline$25 \\ \hline \\ \hline \end{tabular}Step by Step Solution
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