Problem 3: Net Present Values
The table below contains information about three upcoming projects that your company is currently evaluating. As their financial analyst it is your duty to evaluate each of the three projects and help your company select the best project. Your company uses an appropriate discount rate of 9.5% to evaluate projects and your corporate tax rate is 35%. (Assume all net working capital being used will be recovered at the end of the project’s life. Ignore CCA tax shield for this question.)
Projects:
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