Comparing capital budgeting projects : A project\'s net present value (NPV) is c

Question

Comparing capital budgeting projects: A project's net present value (NPV) is computed by discounting the cash inflows from the project and subtracting the investment (if conventional). The NPV will increase if one or more cash inflows is increased or received sooner, the investment is smaller, or the discount rate is smaller, everything else equal. CLICK AND DRAG QUESTION: EXAMINE the various projects is visible when hoveing ove the daggable project name) and place them ascending order based on their net present value (NPV). While no calculationd sare absolutely required, as the projects may be ordered bsed on their investment, cash inflows, and required rate of return, the NPVs ay certainly be computed bsed on the information given. To assistin determining into which area each project name needs to be dropped, the rop areas are labeled with the respective NPVs. PROJECT A PROJECT B PROJECT C PROJECT D PROJECT E PROJECT F PROJECT G PROJECT H: NPV equals -$37,741; NPV equals $162,259; NPV equals $304,615; NPV equals $399,173; NPV equals $62,259; NPV equals $233,437; NPV equals $384,334; NPV equals $414,500

Explanation / Answer

Project A NPV = -37,741

Project B NPV = 162,259

Project C NPV = 304,615

Project D NPV = 399,173

Project E NPV = 62,259

Project F NPV = 233,437

Project G NPV = 384,334

Project H NPV = 414,500

Ascending order of projects based on NPV:

Project A, Project E, Project B, Project F, Project C, Project G, Project D, Project H

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