Johnson Enterprises has three possible projects.Each project requires the same initial investment of $1,000,000.The cash flows are as follows:

Ignoring taxes,compute the net present value of each project at a 15 percent cost of capital.Which project should be chosen? Be sure to show your supporting calculations.

Question

Johnson Enterprises has three possible projects.Each project requires the same initial investment of $1,000,000.The cash flows are as follows:
  
Ignoring taxes,compute the net present value of each project at a 15 percent cost of capital.Which project should be chosen? Be sure to show your supporting calculations.

Quizplus · Accepted Answer

The Answer of Johnson Enterprises has three possible projects.Each project requires the same initial investment of $1,000,000.The cash flows are as follows:
  
Ignoring taxes,compute the net present value of each project at a 15 percent cost of capital.Which project should be chosen? Be sure to show your supporting calculations.

Johnson Enterprises Has Three Possible Projects