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A manager of your Company. ask your advice to evaluate 3 projects, consider the following information to determine the project the manager should be select

A manager of your Company. ask your advice to evaluate 3 projects, consider the following information to determine the project the manager should be select by the following criterias:

1- Risk-Adjusted Discount Rate RADR 2- Equivalent Certainty Factor CF

Projects A B C
Cost 100000 150000 200000
Expected of cash inflows 20000 25000 30000
Life( years) 7 9 10
Level of risk ( c.v) 0.24 0.34 0.18

company usually uses the following discount rates 10%, 7%, 12%, and certainty factors 0.633, 0.742, 0.543

Risk free rate 5%

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