Project A Project I Project U Cash Flow Year 1 250,000 450,000 250,000 Year 2 250,000 450,000 400,000 Year 3 250,000 450,000 600,000 Year 4 250,000 450,000 800,000 Year 5 400,000 400,000 200,000 Year 6 400,000 400,000 800,000 Year 7 400,000 400,000 600,000 Year 8 400,000 400,000 200,000 4% 6% 8% Cost of Capital

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the NPV, payback period, and internal rate of return for all project.

With the initial cost of 1250000.000.
Which project is the best.
Project A Project I Project U
Cash Flow
Year 1
250,000
450,000
250,000
Year 2
250,000
450,000
400,000
Year 3
250,000
450,000
600,000
Year 4
250,000
450,000 800,000
Year 5
400,000
400,000
200,000
Year 6
400,000
400,000 800,000
Year 7
400,000
400,000
600,000
Year 8
400,000
400,000
200,000
4%
6%
8%
Cost of Capital
Transcribed Image Text:Project A Project I Project U Cash Flow Year 1 250,000 450,000 250,000 Year 2 250,000 450,000 400,000 Year 3 250,000 450,000 600,000 Year 4 250,000 450,000 800,000 Year 5 400,000 400,000 200,000 Year 6 400,000 400,000 800,000 Year 7 400,000 400,000 600,000 Year 8 400,000 400,000 200,000 4% 6% 8% Cost of Capital
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