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Your firm has identified three potential investment projects. The projects and their cash flows are shown here:(Click on the icon located on the top-right corner

Your firm has identified three potential investment projects. The projects and their cash flows are shown here:(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Project

Cash Flow Today

(millions)

Cash Flow in One Year

(millions)

A

negative $ 10$10

$ 20$20

B

$ 5$5

$ 5$5

C

$ 20$20

negative $ 10$10

Suppose all cash flows are certain and the risk-free interest rate is

10 %10%.

a. What is the NPV of each project?

b. If the firm can choose only one of these projects, which should it choose?

c. If the firm can choose any two of these projects, which should it choose?

a. What is the NPV of each project?

The NPV of project A is ____

million. (Round to two decimal places.)

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