The Following Information Relates to Three Mutually Exclusive Projects REQUIRED:
Compute the Net Present Value of Each Project at

question 61

Essay

The following information relates to three mutually exclusive projects.
$\begin{array}{lllll}&\text { Project } A & \text { Project } B & \text { Project C } \\\text { Initial cash outlay }&\$ 40,000 & \$ 40,000 & \$ 40,000 \\\text { Net cash inflows: }\\\text { Year } 1 & 3000 & 16000 & 12000 \\ 2 & 7,000 & 13,000 & 12,000 \\ 3 & 11,000 & 10,000 & 12,000 \\ 4 & 15,000 & 7,000 & 12,000 \\ 5 & 19,000 & 4,000 & 12,000\\\text { Salvage value Year } 5&8,000&\text { Nil }&2,000\end{array}$ REQUIRED:
Compute the net present value of each project at a discount rate of 10%.

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Definitions:

Micro-multinational Corporation

A small company that operates in various countries, leveraging technology and globalization to access international markets.

E-commerce Start-up

A business that is initiated on the internet selling goods, services, or both to consumers, operating primarily in the digital ecosystem.

World Economic Forum

An international organization for public-private cooperation that engages business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

Public-private Cooperation

Collaborative partnerships between government entities and private sector companies aimed at achieving mutual goals.