Which should the company elect and why you must use at


A company has the opportunity to elect 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 elect and why? You must use at least two capital budgeting methods. Show your work.

Year A B C

0 -300 -150 -350

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

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Finance Basics: Which should the company elect and why you must use at
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