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Your company is considering the following projects: 0 1 2 3 4 Project 1 -10,000 0 0 10,000 5,000 Project 2 -7,000 0 4,000 4,000
Your company is considering the following projects:
| 0 | 1 | 2 | 3 | 4 | |
| Project 1 | -10,000 | 0 | 0 | 10,000 | 5,000 |
| Project 2 | -7,000 | 0 | 4,000 | 4,000 | 4,000 |
| Project 3 | -3,000 | 0 | 5,000 |
If the expansion budget is limited at $12 million, which project/projects should the company take?
| a. | Project 3 | |
| b. | Projects 2 & 3 | |
| c. | Project 1 and 3 | |
| d. | Project 2 |
I am not given a discount rate for this question.
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