Making a decision for investment using npv

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Reference no: EM1312102

Making a decision for Investment using NPV.

You currently have 200 to invest. Your discount rate is 20%. (i.e. cost of capital). You have the opportunity to invest in the following projects. In which project(s) should you invest (note: you can invest in 0, 1 or 2 projects)?

Years/cash flows

0

1

2

3

4

5

6

Project A

-150

55

60

60

65

0

0

Project B

-50

10

15

25

25

25

20

Project C

-200

100

90

50

50

10

0

 

Reference no: EM1312102

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