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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

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: Project A, next year cash flow of $50,000 and will continue annually and indefinitely Project B, next year cash flow of $75,000 growing at a constant rate of 3.0% annually and indefinitely Project C, first cash flow of $100,000 is in five years, continue annually and indefinitely after that. Rank the projects by their NPV and determine if the firm should accept them a. assume first 5.0% discount rate. b. repeat with 12% discount rate.

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