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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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