Office Min is considering several risk-free projects: Project Initial cash flow Cash flow in 1 year A
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Question:
Office Min is considering several risk-free projects:
Project | Initial cash flow | Cash flow in 1 year |
---|---|---|
A | -9,100 | 10,920 |
B | -4,000 | 4,200 |
C | -5,400 | 6,210 |
The risk-free interest rate is 6%.
What is the NPV of project A?
What is the NPV of project B?
What is the NPV of project C?
Which projects should the company accept?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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