You are the CFO of the corporation, and you have three alternative projects A B C 0

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You are the CFO of the corporation, and you have three alternative projects

	A	B	C
0	-200	-250	-440
1	110	150	125
2	115	150	375

Assume that the discount rate is a 9%.

a) What is the NPV of each project.

b) Which of the three projects would you choose if you can only choose one of them?

c) If you could invest up to 450, which project/s would you choose? (You cannot invest partially in any project)

d) Which is the profitability index for each project? What is the profitability index of your choice in part c?

Related Book For answer-question

Understanding Basic Statistics

ISBN: 9781111827021

6th Edition

Authors: Charles Henry Brase, Corrinne Pellillo Brase

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Posted Date: Jun 01, 2023 07:29 AM

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You are the CFO of the corporation, and you have three alternative projects A B C 0

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To calculate the NPV of each project we need to discount the cash flows of each project using the gi... View the full answer

Understanding Basic Statistics

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