Assume that Oriole Inc. has a capital budget of $219,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen, assuming k is 14 percent. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places e.g. 58,971.25.)
Project | Initial CF | CF1 | CF2 | CF3 | |||||
A | -104,000 | 84,000 | 83,000 | 0 | |||||
B | -75,500 | 53,000 | 64,000 | 74,000 | |||||
C | -115,000 | 58,000 | 104,000 | 84,000 |
NPVAB | $ | ||
NPVAC | $ | ||
NPVBC | $ | ||
Projects A alone Projects B alone Projects C alone Projects A & B Projects A & C Projects B & C should be chosen. |
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