I also need assistance with homework right now. Please see the attached file for my problem.
Your firm has identified three potential investment prjects. The projects and their cas flows are shown here:
Project
Cash Flow Today
Cash Flow in one Year
a
-$11
$23
b
$8
$8
c
$23
-$11
Suppose all cash flows are certain and the interest reate is 10.6%.
What is the NPV of each project?
If the firm can choose only of these prjects which should it choose?
IF the firm can choose any two fo these projects which should it choose?
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