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3. A business considers the following investment projects; your task is to determine whether to accept or reject the following investment: All the projects require
3. A business considers the following investment projects; your task is to determine whether to accept or reject the following investment: All the projects require an immediate investment of $600,000, with cash inflows starting one year from today as follows: A is a renewable energy facility with a growing perpetual cash flow, where next year cash flow is $50,000 and will grow in perpetuity at a 1% rate. Proiect B will have the following cash flows: Project C will pay $300,000 every year, for three years. Evaluate the three projects NPV and determine whether the business should undertake the projects. Also, using the NPV magnitude choosing between A,B or C, rank the project from best to worst a. Assume 5\% discount rate b. Assume 20\% discount rate
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