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Problem 3 Let's Play A firm evaluates 4 investment projects with cash flows as provided in the table below. The required rate of return

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Problem 3 Let's Play A firm evaluates 4 investment projects with cash flows as provided in the table below. The required rate of return (discount rate) is 5%. Period A B C D 0 -100 -200 -40 -20 1 30 50 50 30 10 2 50 50 8 10 3 70 110 8 10 1. Calculate the NPV, the PP. the IRR and the PI of the 4 projects. 2. If the firm faces no budget constraints, which projects should be selected? 3. If the firm has a budget of $150, which projects should be selected? 4. If the firm has a budget constraint of 160$ and it can take any project multiple times, what is the best project combination? 5. If the four projects are mutually exclusive, what should the firm do?

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