Reference no: EM132585907
Monson company is considering three investment opportunities with cash flow as describe below:
PROJECT A:
Cash investment now 15,000
Cash inflow at the end of 5years 21,000
Cash inflow at the end of 8years. 21,000
PROJECT B:
Cash investment now. 11,000
Annual cash outflow for 5years. 3,000
Additional cash inflow at the end of 5years. 21,000
PROJECT C:
Cash investment now. 21,000
Annual cash inflow for 4years. 11,000
Cash outflow at the end of 3 years. 5,000
Additional cash inflow at the end of 4years. 15,000
Required;
Question 1: Compute the net present value of each project assuming Monson Company uses a 12% discount rate? Can you please state your comment in the answer?