a) Four investment projects have the following net cash flows. The cost of capital is 15%....

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Finance

a) Four investment projects have thefollowing net cash flows. The cost of capital is 15%. Decide whichof them should be accepted using the net present value method.
Find the discounted payback period.
YEAR
PROJECT A
PROJECT B
PROJECT C
PROJECT D
0
(10,000)
(15,000)
(20,000)
(30,000)
1
5,000
5,000
10,000
0
2
5000
5,000
10,000
0
3
20,000
5,000
4,000
100,000
4
1,000
10,000
2,000
120,000
5
-
5,000
-
60,000

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Transcribed Image Text

a) Four investment projects have thefollowing net cash flows. The cost of capital is 15%. Decide whichof them should be accepted using the net present value method.Find the discounted payback period.YEARPROJECT APROJECT BPROJECT CPROJECT D0(10,000)(15,000)(20,000)(30,000)15,0005,00010,0000250005,00010,0000320,0005,0004,000100,00041,00010,0002,000120,0005-5,000-60,000

YEAR	PROJECT A	PROJECT B	PROJECT C	PROJECT D
0	(10,000)	(15,000)	(20,000)	(30,000)
1	5,000	5,000	10,000	0
2	5000	5,000	10,000	0
3	20,000	5,000	4,000	100,000
4	1,000	10,000	2,000	120,000
5	-	5,000	-	60,000