(Ignore Income Taxes in This Problem

question 117

Essay

(Ignore income taxes in this problem.)Consider the following three investment opportunities:
Project I would require an immediate cash outlay of $40,000 and would result in cash savings of $9,000 each year for 5 years.
Project II would require cash outlays of $7,000 per year and would provide a cash inflow of $40,000 at the end of 5 years.
Project III would require a cash outlay of $36,000 now and would provide a cash inflow of $60,000 at the end of 5 years.
Required:
The discount rate is 10%.Use the net present value method to determine which,if any,of the three projects is acceptable.

---

Definitions:

Assaults

Acts of physical violence or threats intended to harm or intimidate another person, often causing a fear for safety.

Sexually Abused

describes an individual who has experienced unwanted or forced sexual activity by another.

Warning Sign

An indication or alert of potential danger, problem, or need to stop.

Physical Contact

Direct touching or interaction between individuals, which can range from casual to intimate in nature.