Selection of investment opportunities under npvmonson

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Reference no: EM13356095

Selection of investment opportunities under NPV.

Monson Company is considering three investment opportunities with cash flows as described below:

Project A
Cash investment now	$15,000
Cash inflow at the end of 5 years	$21,000
Cash inflow at the end of 8 years	$21,000
Project B
Cash investment now	$11,000
Annual Cash outflow for 5 years	$3,000
Additional Cash inflow at the end of 5 years	$21,000
Project C
Cash investment now	$21,000
Annual Cash outflow for 4 years	$11,000
Cash inflow at the end of 3 years	$5,000
Additional Cash inflow at the end of 4 years	$15,000

Required:
Compute the net present value of each project assuming Monson Company uses a 12% discount rate.

Reference no: EM13356095

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