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Rich Computer Services has the following three investment projects available this year. The firm's cost of capital is 7 %. Project A B C Initial

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Rich Computer Services has the following three investment projects available this year. The firm's cost of capital is 7 %. Project A B C Initial cost $20,000 $30,000 $30,000 Year 1 CF 10,000 15,000 12,000 Year 2 CF 11,000 14,000 13,000 Year 3 CF 12,000 13,000 14,000 Year 4 CF 13,000 12,000 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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