Present value of future after-tax cash flows

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Financial analysts for the Kolbe Mining Company are considering the following set of investments, which are not mutually exclusive. Each project’s initial investment is $100,000.

Proposal          Present Value of Future After-tax Cash Flows

$123,000

  139,000

  134,000

  264,000

  180,000

  418,000

  424,000

  170,000

  143,000

    74,000

Which projects should the firm select if it has unlimited funds?

Which projects should the firm select if it must limit capital expenditures this year to $500,000?

Reference no: EM131873901

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