Question: answer with excel formula on excel spreadsheet B E G D F 1 Your firm has identified three potential investment projects. The projects and their

answer with excel formula on excel spreadsheet B E G D

answer with excel formula on excel spreadsheet

B E G D F 1 Your firm has identified three potential investment projects. The projects and their cash flows are shown here: 2 Rate 10% 3 Project Cash Flow Today Cash Flow One Year NPV 4 A $ 20.00 $ (10.00) 5 B $ 5.00 $ 5.00 6 C $ (10.00) $ 20.00 7 8 Suppose all cash flows are certain and the risk-free interest rate is 10%. 9 10 1. What is the NPV of each project? 11 2. If the firm can choose only one of these projects, which should it choose? 12 3. If the firm can choose any two of these projects, which should it choose? 13

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