The hotel can only fund one of these three projects Cash flows/year 0 1 2 31 41

The hotel can only fund one of these three projects

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Cash flows/year 0 1 2 31 41 Total 1 2 3 -6,000 -3,000 -3,000 500 1,700 0 600 1,850 0 3,500 500 0 3,500 650 4,800 2,100 1,700 1,800 Note: these figures are cash flows; depreciation is straight line. NPV table @ 5% for calculating NPV only, PBP is not discounted Year 5% 0 1 1 0.952 2 0.907 3 0.864 4 0.823