project management

1. Assume you are the Head of the project selection committee at Banda Company. Your company is considering three different projects. Based on the past experience Banda Company expects at least a rate of return of 20% (discounted rate). Your financial experts predict inflation will remain at 3% in the future. Given the following information for each project, which one should be your first priority. Project A year Investment (FD) Net Cash flow (FD) 0 500000 0 30000 250000 350000 2 3 Cash In (FD) Cash Out Project B year Investment (FD) (FD) 0 250000 0 1 90000 2 85000 3 350000 15000 10000 10000 Cash Out Project C year Investment (FD) 0 75000 30000 2 50000 3 150000 1 Cash In (FD) 5000 15000 25000 50000