Question
There are three projects A, B, and C. All projects have PV(costs)= $1 million. The appropriate discount rate for the three projects is 10%.. Project
There are three projects A, B, and C. All projects have PV(costs)= $1 million. The appropriate discount rate for the three projects is 10%.. Project A has NPV = $1, B has NPV = $100 and C has NPV = -$50. Suppose these three projects are independent (that is taking one project doesn't affect the NPV's of the other two). You are allowed to take more than one project. Then you should take?
A. Project B
B. Projects A, B, and C
C. Project C
D. Projects A and B
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Derivatives Markets
Authors: Rober L. Macdonald
4th edition
321543084, 978-0321543080
