11 tco f company a has the opportunity to do any none or


11. (TCO F) Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. Projects A and B can be done together. Projects B and C can be done together. But Projects A and C are mutually exclusive. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work.
A B C
0 -500 -500 -600
1 200 -200 100
2 200 200 100
3 200 200 100
4 200 200 100
5 200 200 100
6 200 200 100
7 -300 -300 100

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