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You have a $10 million capital budget and must make the decision about which investments your firm should accept for the coming year. The firms

You have a $10 million capital budget and must make the decision about which investments your firm should accept for the coming year. The firms cost of capital is 12 percent. Use the information on the four projects to determine what project(s) your firm should accept on the basis of NPV?

Project 1 Project 2 Project 3 Project 4
Initial CF -4,000,000 -5,000,000 -10,000,000 5,000,000
Year 1 CF

1,000,000

2,000,000 4,000,000 2,700,000
Year 2 CF 2,000,000 3,000,000 6,000,000 2,700,000
Year 3 CF 3,000,000 3,000,000 5,000,000 2,700,000

A) Projects 3, 4

B) Projects 1, 2

C) Project 3

D) Projects 2, 4

Please cross reference https://www.chegg.com/homework-help/questions-and-answers/10-million-capital-budget-must-make-decision-investments-firm-accept-coming-year-firm-s-co-q58576072 and https://www.chegg.com/homework-help/questions-and-answers/project-1-project-2-project-3-project-4-initial-cf-4-000-000-5-000-000-10-000-000-5-000-00-q58583555 before you finalize your answer

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