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What is the net present value of each project

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Reference no: EM132540936

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

Project ABC

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 DEF:

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 GHI

Cash investment now $21,000

Annual cash outflow for 4 years $11,000

Cash outflow at the end of 3 years $5,000

Additional cash inflow at the end of 4years $15,000

Question 1: What is the net present value of each project assuming Monson Company uses a 12% discount rate?

Reference no: EM132540936

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