You are an angel investor, and 4 entrepreneurs have approached you to build some innovative folding tables, and the proposals are as follows. Project A, an investment of 601620 and annual cash flows respectively of 162629, 102390, 194996 and 540881. Project B, an investment of 262256 and annual cash flows respectively of 241160, 25992, 279502 and 270678. Project C, an investment of 514012 and annual cash flows respectively of 181039, 554818, 386520 and 83787. Project D, an investment of 630067 and annual cash flows respectively of 311645, 36977, 442569 and 223467. If the rate expected by you is 4.33% per year of compound interest. Which project is more profitable according to the NPV (Net Present Value)? Question 2 options: b c  a d

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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You are an angel investor, and 4 entrepreneurs have approached you to build some innovative folding tables, and the proposals are as follows. Project A, an investment of 601620 and annual cash flows respectively of 162629, 102390, 194996 and 540881. Project B, an investment of 262256 and annual cash flows respectively of 241160, 25992, 279502 and 270678. Project C, an investment of 514012 and annual cash flows respectively of 181039, 554818, 386520 and 83787. Project D, an investment of 630067 and annual cash flows respectively of 311645, 36977, 442569 and 223467. If the rate expected by you is 4.33% per year of compound interest. Which project is more profitable according to the NPV (Net Present Value)?

Question 2 options:

b

a

d

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