23. Assume the appropriate discount rate for each of the following projects (1,2,3) is 7.25% per period and the projects are mutually exclusive. Based on NPV, which of the following projects in management most likely to pursue? Project 1 Project 2 Project 3 T=0 $ (100) $ (100) $ (100) T=1 $ 60 $ 50 $ 210 T=2 $ 50 $ 61 $ (110) a. b. 1 d. II & III e. None of the projects 24. A company estimates an NPV of a project under three different set of assumptions (Bear, Base, Bull) to evaluate forecasting risk management agrees to undertake the project if the weighted average NPV for the three different scenarios (Bear, Base, Bull) is positive. Based on the scenario analysis performed, the company will pursue the project. Evaluate the underlined words in italics. True or False? Scenerio Bear Base Bull $ $ $ NPV Probability (100) 30.00% 35 50.00% 65 20.00% a. b. True False 25. Assume management has found profitable investment opportunities, but lacks the funds to undertake one or more of these opportunities. This situation is most closely related to the concept of: a. Managerial options b. Sensitivity analysis c. Forecasting risk d. Capital rationing e. Opportunity costs