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Office Min is considering several risk-free projects: Project Initial cash flow Cash flow in 1 year A -8,600 10,320 B -4,000 4,200 C -6,900 7,935
Office Min is considering several risk-free projects:
Project | Initial cash flow | Cash flow in 1 year |
A | -8,600 | 10,320 |
B | -4,000 | 4,200 |
C | -6,900 | 7,935 |
The risk-free interest rate is 10%.
Part 1
What is the NPV of project A?
Answer:
Attempt 1/10 for 10 pts.
Part 2
What is the NPV of project B?
Answer:
Part 3
What is the NPV of project C?
Answer:
Part 4
Which projects should the company accept?
Check all that apply:
Project C
Project A
Project B
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