Question: Decisions-Decisions, Inc. is evaluating three potential projects. Given the information in the table below, the fact that the firm can invest no more than $30

Decisions-Decisions, Inc. is evaluating three potential projects. Given the information in the table below, the fact that the firm can invest no more than $30 million, and the hurdle rate is 12%, the firm should invest in:

Year

Projects ($ in millions)

1

2

3

0

14

15

30

1

24

41

68

2

50

62

94

NPV

47.29

71.03

105.65
a.

projects 1 and 3
b.

only project 3
c.

only project 1
d.

only project 2
e.

projects 1 and 2

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