What is the npv of project

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Your firm has identified three potential investment projects. The projects and their cash flows are shown? here:

Project

Cash Flow Today ?(millions)

Cash Flow in One Year ?(millions)

A

-$5

$21  

B

$6 

$7

C

$15 

-$7       

Suppose all cash flows are certain and the? risk-free interest rate is 6%.

a. What is the NPV of each? project?

b. If the firm can choose only one of these? projects, which should it choose based on the NPV decision? rule?

c. If the firm can choose any two of these? projects, which should it choose based on the NPV decision? rule?

Reference no: EM133061705

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