Best Co. is evaluating the following mutually exclusive projects for investment (numbers are in $ millions).

Period	Proj. A	Proj. B	Proj. C
0	-10	-15	-20
1	3	3	4
2	3	4	5
3	3	5	6
4	3	6	7
5	3	7	8

If the appropriate discount rate is 15% (after tax), what is the net present value (NPV) of Proj. B (in $ millions)?

Group of answer choices

NPV 0

0 < NPV 0.05

0.05 < NPV 0.10

0.10 < NPV

Best Co. is evaluating a project that will increase annual sales by $100,000 per year and incremental cash costs by $60,000 per year. The project will require an investment of $125,000 in fixed assets, which can be depreciated on a straight-line to a zero book-value over the 5-year life of the project. The applicable tax rate is 25%. The company expects the fixed asset can be sold at the end of the project (year 5) for $7,500 salvage value.

You are tasked with comparing this project with another which lasts 10 years. In order to do this you must calculated its equivalent annual cost (EAC). At a discount rate of 12% (after tax) what is this projects EAC?

Group of answer choices

EAC 1,500

1,500 < EAC 2,000

2,000 < EAC 2,500

2,500 < EAC

Best Co. is evaluating the following mutually exclusive projects for investment (numbers are in $ millions).

Period	Proj. A	Proj. B	Proj. C
0	-10	-15	-20
1	3	3	4
2	3	4	5
3	3	5	6
4	3	6	7
5	3	7	8

Based on the IRR rule, if the hurdle rate is 15% and the projects are NOT mutually exclusive, which project(s) should Best Co. accept?

Group of answer choices

Project A

Project B

Project C

Projects A and B

Projects B and C

All of the projects