Ex 4. A company is looking at launching a new business line and is considering the following options:
Product A, B or C, with the following initial investments and expected cash flows:
Discount factor is 7%
	Product A	Product B	Product C
II (initial Investment)	11.000	16.000	21.000
Cash flow year 1	1.500	3.000	6.500
Cash flow year 2	3.000	2.000	7.000
Cash flow year 3	4.000	6.000	5.000
Cash flow year 4	5.000	4.000	4.000
Where should the company expand if its objective is the shortest payback period possible ?
Calculate the net present value (NPV), benefit cost ratio (BCR), internal rate of return (IRR) and equivalent annual annuity (EAA) of each project and confirm wether the payback objective of the company is inline with the most profitable project

Ex 4. A company is looking at launching a new business line and is considering the following options: Product A, B or C, with the following initial investments and expected cash flows: Discount factor is 7% Product A Product B Product C II (initial Investment) 11.000 16.000 21.000 Cash flow year 1 1.500 3.000 6.500 Cash flow year 2 3.000 2.000 7.000 Cash flow year 3 4.000 6.000 5.000 Cash flow year 4 5.000 4.000 4.000 Where should the company expand if its objective is the shortest payback period possible? Calculate the net present value (NPV), benefit cost ratio (BCR), internal rate of return (IRR) and equivalent annual annuity (EAA) of each project and confirm wether the pa