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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. image text in transcribedimage text in transcribed

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}

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