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	$9		$18
B	$3		$4
C	$20		$12

Suppose all cash flows are certain and the risk-free interest rate is 8%.

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.)

The NPV of project B is __________ million.(Round to two decimal places.)

The NPV of project C is __________million. (Round to two decimal places.)

b. If the firm can choose only one of these projects, which should it choose based on the NPV decision rule?(Select the best choice below.)

A.

Project C

B.

Project B

C.

Project A

D.

Cannot tell

c. If the firm can choose any two of these projects, which should it choose based on the NPV decision rule?(Select the best choice below.)

A.

Project B and project A

B.

Project C and project B

C.

Project C and project A

D.

Cannot tell