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Question C[AR1: 5 Marks) Rich Computer Services has the following three investment projects available this year. The firm's cost of capital is 7 %. Project
Question C[AR1: 5 Marks) Rich Computer Services has the following three investment projects available this year. The firm's cost of capital is 7 %. Project Initial cost Year 1 CF Year 2 CF Year 3 CF Year 4 CF A -$20,000 10,000 11,000 12,000 13,000 B -$30,000 15,000 14,000 13.000 12,000 C $30,000 12,000 13.000 14,000 15,000 a. Based on NPV, IRR and PI, which projects are acceptable? Why? b. What is your decision if the projects are mutually exclusive
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