Make use of MS Excel for your calculations.
The following is a list of four projects that Capital Corporation must choose from for the coming year:
Project Project Price Annual Net In?ows
A 700,000 118,861
B 670,000 109,039
C 184,000 32,549
D 273,000 48,305
(1) Given a uniform rate of interest of 9% and a uniform life of the projects of 10 years each, calculate the NPVs of each Project.
(2) Should we choose Projects A, C, D or Projects A, B, D. Explain.