PART 1 Try evaluating the following projects with all of the basic capital budgeting tools, in other words,

PART 1 Try evaluating the following projects with all of the basic capital budgeting tools, in other words, which project would you pick as the best:

Projected Cash Flow Years 0 1 2 3 4 5

Project A (500) 45 55 65 175 185

Project B (250) 85 65 55 45 100

Project C (400) 175 75 75 175 25

Use 10% as your discount rate! Remember, NPV is always in dollars, IRR is a percentage, PI is an index number, and PB is in years. SOLUTION