Mutually exclusive Projects
Project A
Project B
Project C
Initial
cash Outlay
(50,000)
(60,000)
(40,000)
Required
Rate of Return
11%
8%
13%
Cash Flows:
Inflow Year 1
10,000
30000
8,000
Inflow Year 2
15,000
50000
20,000
Inflow Year 3
20,000
5000
20,000
Inflow Year 4
25,000
5000
20,000
Inflow Year 5
30,000
2000
15,000
Step 1
Your first assignment as a financial analysis manager at
Caledonia Products is to evaluate three new capital budget
proposals. You have...