Write down the net present value of each project

Reference no: EM133325763

Question: Suppose you have $100 today and there are four projects available to invest in. Call these projects A,B,C and D. Project A requires a cash-flow today equal to -22 and has a risk-free cash-flow in one year equal to 30 . Project B requires a cash-flow today equal to -15 and has a risk-free cash-flow in one year equal to 23. Project C requires a cash-flow today equal to -10 and has a risk-free cash-flow in one year equal to 11 . Project D requires a cash-flow today equal to -17 and has a risk-free cash-flow in one year equal to 18. Assume the risk-free rate is 10%. (i) Write down the Net Present Value (NPV) of each project and rank them in order of those most desirable

ii) what should you end up doing with your entire $100? Explain.

Reference no: EM133325763

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