The Ottawa Micro Brewery Company (OMB) is examining four expansion projects. OMB has adjusted the cost of capital to reflect the risk level of each project. The cash flows, which occur at year end, are as follows:

Required:
(a) Calculate the net present value for each project.
(b) Which project should OMB choose if it can only do one project?

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Project Cash Flows (thousands of dollars) Cost of Capital Year 4% Project 2 $ (160) 8% 2% 10% Project 1 $ (620) 120 120 120 120 120 120 120 Project 4 (230) 50 50 50 50 Project 3 (500) 80 30 30 30 30 30 30 50 50