Carol, Inc. is considering three different independent investment opportunities. The present value of future cash flows, initial investment, and net present value for each of the projects are as follows:        Project A         Project B         Project C      Present value of future cash flows    $    651,200         $    476,700         $    585,200      Initial investment         280,000              235,000              270,000      Net present value    $    371,200         $    241,700         $    315,200      In what order should Carol prioritize investment in the projects? Multiple Choice A, B, C C, A, B C, B, A

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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Carol, Inc. is considering three different independent investment opportunities. The present value of future cash flows, initial investment, and net present value for each of the projects are as follows:
 

     Project A         Project B         Project C     
Present value of future cash flows    $    651,200         $    476,700         $    585,200     
Initial investment         280,000              235,000              270,000     
Net present value    $    371,200         $    241,700         $    315,200     

In what order should Carol prioritize investment in the projects?

Multiple Choice

A, B, C


C, A, B


C, B, A


A, C, B

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