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Calculate using Excel formulas, the NPV of each of the 3 projects. It is possible...

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Accounting

Calculate using Excel formulas, the NPV of each of the 3 projects. It is possible that ABC Company may not be able to complete all 3 projects. Therefore, advise ABC Company as to the order in which they should pursue the projects (i.e., which project should ABC Company attempt to do first, second, and last).

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ABC Company's management is also considering 3 new projects consisting of the purchase of new equipment. The company has limited resources, and may not be able to complete make al 3 purchases. The information is as follows for the purchases below Project 1 $80,000 5% Project 2 Project 3 Purchase Price $175,000 $22,700 Required Rate of Return 5% 12% Time Period 2 years $13,000 $13,000 3 years 5 years Cash Flows - Year 1 S48,000 $85,000 $74,000 $38,000 $26,800 $19,000 Cash Flows - Year 2 S36,000 Cash Flows - Year 3 $22,000 N/A Cash Flows - Year 4 N/A N/A Cash Flows - Year 5 N/A N/A

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