Question: 3.1 Using the Net Present Value (NPV) approach, which project should be the firms first priority? Why? If the company could invest in more than

3.1 Using the Net Present Value (NPV) approach, which project should be the firms first priority? Why? If the company could invest in more than one project, indicate the order in which it should prioritise these project alternatives. (15)

QUESTION 1 (I5) A company has four project investment alternatives. The required rate of returm en projects is 20%. and inflation is projected to remain at 3% into the foresecable future. The pertinent information about each alternative is listed in the table below. Required: 3.1 Using the Net Present Value (NPV) approach, which project should be the firm's first priority? Why? If the company could invest in more than one project, indicate the order in which it should prioritise these project altematives. (15)

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