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Consider projects A and B with the following cash flows (in $) C0 C1 C2 C3 C4 A -30 10 20 20 20 B -50

Consider projects A and B with the following cash flows (in $)

	C0	C1	C2	C3	C4
A	-30	10	20	20	20
B	-50	20	20	20	20

A. What are the NVPs of the projects when the cost of the capital is 9%

B. If a firm has limited funds to pay for its projects, which project is more attractive?

C. Considering the payback rule, which project is more attractive if the firm requires that it recover the initial investment in two years?

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