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Assume that Riverbed Inc. has a capital budget of $212,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen,

Assume that Riverbed Inc. has a capital budget of $212,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen, assuming k is 12 percent. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places e.g. 58,971.25.)

Project Initial CF CF1 CF2 CF3
A -100,500 80,500 79,500 0
B -72,000 49,500 60,500 70,500
C -111,500 54,500 100,500 80,500

NPVAB $
NPVAC $
NPVBC $

Projects A alone

Projects B alone

Projects C alone

Projects A & B

Projects A & C

Projects B & C should be chosen.

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