Evaluating multiple projects with npv analysis1nbsp you

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Evaluating multiple projects with NPV analysis.

1.  You want to bank enough money to pay for 5 years of undergraduate school plus 3 years of graduate school, at $37,000 per year for your child. The savings account will pay an interest rate of 2.0% per year. The first annual payment for tuition and for room and board will be made in 10 years. If you deposit the money today, how much must you deposit? Show calculations.
2.  Use the table for the question(s) below.

Project 

   Cash flow today    

   Cash flow in one year 

   "alpha" 

  -18

   23

   "beta"

   15

  -12

   "gamma" 

   15

  -20

   "delta" 

  -16

   21

Assume that the interest rate is 10%. Show calculations.

a.Rank each of the four projects from most desirable to least desirable based upon NPV.
b.Which project would you invest in first?
c.Are there any projects that you would not invest in?

Reference no: EM13356084

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