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A company has identified a number of promising projects, as indicated in the following table. The cash flows for the first 2 years are shown

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A company has identified a number of promising projects, as indicated in the following table. The cash flows for the first 2 years are shown (they are all negative). The cash flows in later years are positive, and the net present value of each project is shown. The company managers have allocated up to $250,000 in each of the first 2 years to fund these projects. Which projects should be funded? Projects Year 1 Year 2 NPN 1 -100 -60 200 2 -80 -70 150 3 -50 |-60 150 4 -60 -90 220 5 -90 -70 180 6 -80 -90 160

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