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Suppose all cash flows are certain and the risk-free interest rate is 5%. a. What is the NPV of each project? b. If the firm
Suppose all cash flows are certain and the risk-free interest rate is 5%. a. What is the NPV of each project? b. If the firm can choose only one of these projects, which should it choose based on the NPV decision rule? c. If the firm can choose any two of these projects, which should it choose based on the NPV decision rule? a. What is the NPV of each project? The NPV of project A is million. (Round to two decimal places.) The NPV of project B is $ million. (Round to two decimal places.) The NPV of project C is $ million. (Round to two decimal places.) b. If the firm can choose only one of these projects, which should it choose based on the NPV decision rule? (Select the best choice below.) A. Project A B. Project C C. Project B D. Cannot tell c. If the firm can choose any two of these projects, which should it choose based on the NPV decision rule? (Select the best choice below.) A. Project A and project C B. Project B and project C C. Project B and project A D. Cannot tell
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