Question: Cash Flow Cash Flow Project Today ( $ ) in One Year ( $ ) A - 1 0 2 0 B 5 5 C

Cash Flow Cash Flow
Project Today ($) in One Year ($)
A -1020
B 55
C 20-10
"
Suppose all cash flows are certain and the risk-free interest rate is 10%."
a. What is the NPV of each project?
b. If the firm can choose only one of these projects, which should it choose?
c. If the firm can choose any two of these projects, which should it choose?

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