D'Arcy Builders Ltd. is considering three possible investment projects: A, B, and C. The expected pattern of cash flows for each project is:

The business has a cost of capital of 10% and the capital expenditure budget for next year is $25 million. Required:
Which investment project(s) should the business undertake, assuming:
(a) Each project is divisible?
(b) Each project is non-divisible?
Round present value factors to two decimals.

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Project Cash Flows ($000) ($000) ($000) (20) 12 Initial cost 1 year's time 2 years time5 years' time 4 years' time (17) 1 (24) 13