Alberta Decision Making Experts

$($

ABDME

$)$

$$is a management consulting firm that proceeds with decision

$-$

making analysis via NPV

$.$

$$More information is provided below.

$$

$$

Cash Flows and Discount Rate Project

$1$

$$Project

$2$

$$Project

$3$

$$

Investment

$($

t

$=$

$0$

$)$

$$$

$1$

$2$

$,$

$3$

$4$

$5$

$,$

$2$

$5$

$0$

$$$

$1$

$5$

$,$

$2$

$3$

$4$

$,$

$7$

$0$

$0$

$$$

$2$

$1$

$,$

$4$

$2$

$5$

$,$

$1$

$9$

$0$

$$

Cash Flow

$($

year

$1$

$)$

$$$

$3$

$,$

$4$

$1$

$5$

$,$

$6$

$5$

$0$

$$$

$6$

$,$

$1$

$3$

$5$

$,$

$0$

$6$

$0$

$$$

$9$

$,$

$1$

$3$

$4$

$,$

$2$

$3$

$0$

$$

Cash Flow

$($

year

$2$

$)$

$$$

$3$

$,$

$7$

$2$

$1$

$,$

$5$

$9$

$0$

$$$

$7$

$,$

$1$

$3$

$4$

$,$

$1$

$4$

$0$

$$$

$6$

$,$

$1$

$2$

$3$

$,$

$5$

$4$

$0$

$$

Cash Flow

$($

year

$3$

$)$

$$$

$2$

$,$

$9$

$4$

$0$

$,$

$2$

$3$

$0$

$$$

$4$

$,$

$1$

$3$

$4$

$,$

$6$

$7$

$0$

$$$

$5$

$,$

$3$

$4$

$1$

$,$

$2$

$3$

$0$

$$

Cash Flow

$($

year

$4$

$)$

$$$

$4$

$,$

$2$

$1$

$3$

$,$

$4$

$8$

$0$

$$$

$2$

$1$

$3$

$,$

$4$

$5$

$0$

$$$

$2$

$,$

$4$

$7$

$3$

$,$

$8$

$1$

$0$

$$

Discount Rate

$($

I

$)$

$5$

$.$

$1$

$5$

$\%$

$7$

$.$

$1$

$5$

$\%$

$3$

$.$

$1$

$5$

$\%$

$$

$$

$$

$$In light of the information above, which of the three projects generates the most value? Please make your decision based on the NPV criterion.