Your boss asks you to review a recent analysis that was done to compare three alternative proposals to enhance the firm's manufacturing facility. You find that the prior analysis ranked the proposals according to their IRR, and recommended the highest IRR option, Proposal A. You decide to redo the analysis using NPV to determine whether this recommendation was appropriate. But while you are confident the IRRs were computed correctly, it seems that some of the underlying data regarding the cash flows that were estimated for each proposal was not included in the report. For Proposal B, you cannot find information regarding the total initial investment that was required in Year 0. And for Proposal C, you cannot find the estimated cashflow in Year 3. Here is the information you have (in $ millions):

Proposal	IRR	Year 0	Year 1	Year 2	Year 3
A	60.0%	$100	$30	$153	$88
B	56.9%	?	$0	$206	$95
C	57.5%	$100	$37	$0	?

Suppose the appropriate cost of capital for each alternative is

10%.

Using this information, determine the NPV of each proposal. Which project should the firm choose?

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Part 1

Fill in the missing values ($ millions).

(Round to two decimal places.)

Proposal	IRR	Year 0	Year 1	Year 2	Year 3
A	60.0%	$100	$30	$153	$88
B	56.9%	$enter your response here	$0	$206	$95
C	57.5%	$100	$37	$0	$enter your response here

Suppose the appropriate cost of capital for each alternative is

10%.

Using this information, determine the NPV of each proposal. The NPV for proposal A is

$enter your response here

million.

(Round to two decimal places.)The NPV for proposal B is

$enter your response here

million.

(Round to two decimal places.)The NPV for proposal C is

$enter your response here

million.

(Round to two decimal places.)

Which project should the firm choose?