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Three Projects Each Require an Initial Investment of $150,000

Question 119

Multiple Choice

Three projects each require an initial investment of $150,000. Each has no residual value at the end of three years. The following table presents the forecast annual profits for each project. Three projects each require an initial investment of $150,000. Each has no residual value at the end of three years. The following table presents the forecast annual profits for each project.   -Rank these projects (best to worst)  based on their NPVs if the cost of capital is 8%. A)  2;1;3 B)  3;1;2 C)  3;2;1 D)  2;3;1 E)  1;2;3
-Rank these projects (best to worst) based on their NPVs if the cost of capital is 8%.


A) 2;1;3
B) 3;1;2
C) 3;2;1
D) 2;3;1
E) 1;2;3

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