Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life: Project's Cash Flow ($) Time (n) Project A Project B Project C Project D -$1,500 -$1,200 $600 $800 $1,500 -$1,600 $1,800 $800 $2,500 -$3,100 $800 $1,900 $2,300 1 $3,000 a. Compute the net present worth of each project where interest is 9% b. Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? ( you will be using the same rate that was for part a for this part)
Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life: Project's Cash Flow ($) Time (n) Project A Project B Project C Project D -$1,500 -$1,200 $600 $800 $1,500 -$1,600 $1,800 $800 $2,500 -$3,100 $800 $1,900 $2,300 1 $3,000 a. Compute the net present worth of each project where interest is 9% b. Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? ( you will be using the same rate that was for part a for this part)
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 15P
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a. Compute the net present worth or each project where interest is 9%
b. Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? ( you
will be using the same rate that was for part a for this part)
As part of your answer show the Interest rate for
your calculations,
If you are using Excel Show all your calculations and Cut and Paste your answers below -I will only mark the answer that appears here
not the answer in your Excel Document that your are submitting. The Excel document is only going to be used in the event of incorrect
calculations for part marks.
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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Transcribed Image Text:9 points
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Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life:
Project's Cash Flow ($)
Time
(n)
Project A
Project B
Project C
Project D
$1,500
-$1,200
$600
$800
$1,500
-$1,600
$1,800
$800
$2,500
-$3,100
$800
$1,900
$2,300
1
$3,000
a. Compute the net present worth of each project where interest is 9%
b. Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? (you
will be using the same rate that was for part a for this part)
As part of your answer show the Interest rate for your calculations,
If you are using Excel Show all your calculations and Cut and Paste your answers below-I will only mark the answer that appears here
not the answer in your Excel Document that your are submitting. The Excel document is only going to be used in the event of incorrect
calculations for part marks.
For the toolbar. press ALT+F10 (PC) or ALT+FN+F10 (Mac).
ENG
1:
IN
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