Deriving and Comparing Incremental Cash Flows for Options The cash flows shown below relate to the net benefits for 3 policy options, A, B and C where A is the Base Case scenario. You are required derive the incremental cash flows and calculate the NPVs for options B and C assuming a 6% (real) discount rate. Option/Year 0 2 3 4 5 6 7 8 A 0 50 51 52 53 54 55 56 57 59 B -10 50 52 54 56 58 61 63 C 66 68 -15 50 52.5 55 58 61 64 67 70 7 B-A C-A Disc. Rate= 6% NPV (B) = NPVC)=