Question

You are considering three projects (see Table, below). What are the net present values of each...

You are considering three projects (see Table, below). What are the net present values of each of the projects?

Cost cash flow growth rate cost of capital

$1,400,000 $75,000 .03 .07

$3,000,000 $120,000 .06 .09

$800,000 $50,000 .04 .09

a.

$1,400,000 $3,000,000 $800,000
b.

$75,000 $120,000 $50,000
c.

$475,000 $1,000,000 $200,000
d.

None of these
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