Project on the basis of npv analysis

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Reference no: EM133073228

Three mutually exclusive projects that you are considering have the same project period of 4 years. Using the cash flows presented below, select the best project on the basis of NPV analysis if a two-year continuously compounded interest rate is 20%. (Hint: Need to find an effective rate per year first)

Please show how to work using excel.

 

Project A

Project B

Project C

Initial cost

-$1,200,000.00

-$1,500,000.00

-$2,000,000.00

AOC ($/year)

-$400,000.00

-$250,000.00

-$100,000.00

Salvage value

$0.00

$0.00

$0.00

Reference no: EM133073228

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