Consider the following investment opportunities and their associated cash flows:

                Yr 0               yr1             yre 2          yr3

Deal A   -44k              15k            16k              30k

DEal B  -30k            7000           7k               30k

Deal C   -30k            15k              15k             10k

Assume the projects are mutually exclusive and the firm can raise any amount of capital needed at a cost of 12% per year.  

a.Find the NPV of each project. Based on your analysis, which project should be taken?

b.Find the IRR of each project. Based on this analysis, which project should be taken?

c.Which project has the shortest payback period?

d.Which project would you recommend to your client? Why?

Now assume that the projects are independent and can be carried out in parallel if desired.

e.If the firm can raise as much capital as it needs at 12% a year, which project(s) should be undertaken and why?

f.If the firm has a fixed capital budget limit of $60,000, which project(s) should it undertake and why?(Note: at most one of each project is required, and projects can be scaled back proportionately.)