Analyze Capital Projects and Provide Recommendations
Randolph Inc. is considering the following three capital project proposals.
Proposal A Proposal B Proposal C
Initial investment $ $ $
Annual net cash flows $ $ $
Disinvestment $ $ $
Life years years years
The company initially screens projects considering a payback period of years or less and a positive net present value using a discount rate of
b Compute the net present value for each proposal and determine whether each proposal passes the initially screening based on your results.
Note: Round your answer to the nearest dollar.
Proposal A Proposal B Proposal C
Net present value of all cash flows Answer
Answer
Answer
Accept or Reject Answer
Accept
Answer
Reject
Answer
Reject
