Question: Decisions-Decisions, Inc. is evaluating three potential projects. Given their Cash flows and NPVs shown below, the fact that the firm can invest no more than

Decisions-Decisions, Inc. is evaluating three potential projects. Given their Cash flows and NPVs shown below, the fact that the firm can invest no more than $30 million, and the hurdle rate (cost of capital) is 8%, which is (are) the project(s) the firm should invest in? Project 1: -14 (Year 0), 30 (Year 1), 46 (Year 2); 53.22 (NPV). Project 2: -15 (Year 0), 35 (Year 1), 63 (Year 2); 71.42 (NPV). Project 3: -29 (Year 0), 68 (Year 1), 94 (Year 2); 114.55 (NPV). (Projects cash flows and NPVs are in millions)

	A.	only project 1
	B.	only project 3
	C.	projects 1 and 2
	D.	only project 2
	E.	projects 1 and 3

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