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RAK Company has the following three investment projects available this year. The firm's cost of capital is 8 %. Project Y z Year O CF

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RAK Company has the following three investment projects available this year. The firm's cost of capital is 8 %. Project Y z Year O CF -60,000 -90,000 -90,000 Year 1 CF 30,000 45,000 36,000 Year 2 CF 33,000 42,000 39,000 Year 3 CF 36,000 30,000 42,000 Required: a. Which projects are acceptable? Why? b. What is your decision if the projects are mutually exclusive? Paragraph BI

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