A company has the opportunity to do any of the projects for which the net cash flows per year are shown below. 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.
| Year |
A |
B |
C |
| 0 |
-300 |
-100 |
-300 |
| 1 |
100 |
-50 |
100 |
| 2 |
100 |
100 |
100 |
| 3 |
100 |
100 |
100 |
| 4 |
100 |
100 |
100 |
| 5 |
100 |
100 |
100 |
| 6 |
100 |
100 |
100 |
| 7 |
-100 |
-200 |
0 |