Question: Your company is considering three mutually exclusive projects. Project A Project B Project C Year Cash Flow Cash Flow Cash Flow 0 -$38,500 -$42,000 -$37,000

Your company is considering three mutually exclusive projects.

Project A Project B Project C

Year Cash Flow Cash Flow Cash Flow

0 -$38,500 -$42,000 -$37,000

1 $20,000 $10,000 $15,000

2 $24,000 $40,000 $29,500

3 $26,000 $10,000 $25,000

The company doesnt have any constraints in raising money, and the WACC is 10%.

Which project should they invest in?

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