Question

7. Consider the provided sets of investment projects. Compute the equivalent annual worth of each project at i=12%, and determine the acceptability of each project. Click the icon to view the sets of investment projects 10 Click the icon to view the interest factors for discrete compounding when i= 12% per year. The equivalent annual worth of project A is $ (Round to the nearest dollar.) Select the correct choice from the drop-down menu below. Project A (1) - be accepted. The equivalent annual worth of project B is $ (Round to the nearest dollar.) Select the correct choice from the drop-down menu below Project B (2) be accepted The equivalent annual worth of project C is $ (Round to the nearest dollar.) Select the correct choice from the drop-down menu below Project C (3) be accepted. The equivalent annual worth of project Dis $ (Round to the nearest dollar.) Select the correct choice from the drop-down menu below. Project D (4) be accepted 9: More Info Project's Cash Flow__ - $4,400 - $3.400 $1,000 $1,500 $2,000 - $3,300 $3,000 $2,000 $1,000 - $6,200 $3,800 $3,800 $3,800 $12,500

Answer 1

Calculating the Npv of all projects using financial calculator

A) Project A

Inputs: C0= -4,400

C1= 0. Frequency= 2

C2= 12,500 Frequency= 1

I = 12%

Npv = Compute

We get, Npv= 4,497.

We should accept the project.

B) Project B

Inputs: C0= -3,400

C1= 1,000. Frequency= 1

C2= 1,500. Frequency= 1

C3= 2,000. Frequency= 1

I = 12%

Npv= Compute

We get, Npv= 112

We should accept the project

C) Project C

Inputs: C0= -3,300

C1= 3,000. Frequency= 1

C2= 2,000. Frequency= 1

C3= 1,000. Frequency= 1

I = 12%

NPV= Compute

We get, NPV = 1,685

We should accept the project.

D) Project D

Inputs: C0= -6,200

C1= 3,800 frequency= 3

I = 12%

NPV = compute

We get, Npv= 2,927

We should accept the project