Your company Portfolio Manager is convening a review board in the first calendar quarter to consider three mutually exclusive projects. You have been asked to provide recommendations with respect to the capital budgeting aspects of these projects. Your recommendations will be considered by the review board along with other non-financial aspects of the projects. Initial (year 0) funding will be provided in the current year for the single project selected. Note: The review board may select a project for strategic reasons even if the financial aspects are not ideal.

Project sponsors have provided the following estimated cash flow projections:

Year U'l-hUJNI-ID Project A Outow Inow 1504!!) 20,000 30,000 40,!!!) 40,!!!) 50,000 Netow -150,000 20,000 30,000 40,000 40,000 50,000 Project B Outow 150,000 130,000 Inow 40,011) 50,013) 60,000 90,01!) 90,01!) Netow -150,000 -90,000 50,000 60,000 90,000 90,000 Project C Outow 200,000 150,000 Inow 90 000 100,000 110,000 120,000 Netow -200,000 -150,0m 90,000 1001100 110000 120000