Q1) You presently have 200 to invest. Your discount rate is 20%. (that is cost of capital). You have opportunity to invest in following projects. In which project(s) must you invest?
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 |