Homework answers / question archive / Mega Power would like to evaluate 5 projects A, B ,C ,D and E with the following cash flows

Mega Power would like to evaluate 5 projects A, B ,C ,D and E with the following cash flows

Finance

Share With

Mega Power would like to evaluate 5 projects A, B ,C ,D and E with the following cash flows.

Project     Cashflow-Year:0   Year:1      Year:2      Year:3                                            

A          -150 000         80 000     60 000    70000

 B           -120 000        80 000     80 000    80 000

 C           -200 000        100 000    120 000    140 000

 D           -300 000        150 000    150 000    150 000

 E           -250 000        150 000    100 000    100 000

Mega Power employs the net present value as a capital budgeting technique. The company's cost of capital is 12%. Which projects must Mega Power undertake and in which order in order for it to maximize shareholders wealth?