Problem $3-$ Let$$s Play

A firm evaluates $4$ investment projects with cash flows as provided in the table below. The required

rate of return $($discount rate$)$ is $5\%.$

Period A B C D

$0-100-200-40-20$

$130503010$

$25050810$

$370110810$

$1.$ Calculate the NPV$,$ the PP$.$ the IRR and the PI of the $4$ projects.

$2.$ If the firm faces no budget constraints, which projects should be selected?

$3.$ If the firm has a budget of $$150,$ which projects should be selected?

$4.$ If the firm has a budget constraint of $160$$ and it can take any project multiple

times, what is the best project combination?

$5.$ If the four projects are mutually exclusive, what should the firm do$?$