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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%.

  1. Which of the above projects would you invest in? Why?
  2. If you have only $12,000 which one project would you select? Why?
  3. 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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