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Analyze Capital Projects and Provide Recommendations Randolph Inc. is considering the following three capital project...

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Accounting

Analyze Capital Projects and Provide Recommendations
Randolph Inc. is considering the following three capital project proposals.
Proposal A Proposal B Proposal C
Initial investment $350,000 $280,000 $140,000
Annual net cash flows $105,000 $88,200 $56,000
Disinvestment $0 $0 $0
Life 5 years 4 years 3 years
The company initially screens projects considering (1) a payback period of 2.5 years or less and (2) a positive net present value using a discount rate of 10%
b. Compute the net present value for each proposal and determine whether each proposal passes the initially screening based on your results.
Note: Round your answer to the nearest dollar.
Proposal A Proposal B Proposal C
Net present value of all cash flows Answer
Answer
Answer
Accept or Reject Answer
Accept
Answer
Reject
Answer
Reject

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