Problem:
Work out the NPVs of the following. Indicate which projects should be undertaken:
(i) A project with an outflow of $100,000 in year 0 followed by inflows of $75,000 in years 1 and 2. Use a discount rate of 12%.
(ii) A project with an outflow of $50,000 in year 0 followed by an inflow of $100,000 in year 5. Use a discount rate of 15%.
(iii) A project with an outflow of $50,000 in year 0 followed by an inflow of $100,000 in year 5. Use a discount rate of 10%.