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Project CF0 CF1 CF2 CF3 CF4 CF5 A -12000 3000 3000 4000 4000 1000 B -12000 4000 4000 3000 3000 1000 C -12000 3000 3000
Project | CF0 | CF1 | CF2 | CF3 | CF4 | CF5 |
A | -12000 | 3000 | 3000 | 4000 | 4000 | 1000 |
B | -12000 | 4000 | 4000 | 3000 | 3000 | 1000 |
C | -12000 | 3000 | 3000 | 3000 | 3000 | 1000 |
D | -12000 | 2000 | 2000 | 2000 | 6000 | 6000 |
E | -12000 | 1000 | 1000 | 1000 | 5000 | 7000 |
Assume I=5%.
- Which of the above projects would you invest in? Why?
- If you have only $12,000 which one project would you select? Why?
- If you have only $24,000 (you may invest in maximum two of these projects) which of the projects would you select? Why?
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