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A company facing an interest rate of 10% must choose among projects offering the following four-year cash flows. If the company is employing the net present value criterion, which project should they choose? A) $25,000 in year 1; $15,000 in year 2; $10,000 in year 3; and $5,000 in year 4 and 5 B) $5,000 in year 1; $5,000 in year 2; $20,000 in year 3; and $30,000 in year 4 and 5 C) $15,000 in year 1; $15,000 in year 2; $15,000 in year 3; and $15,000 in year 4 and  5 D) $5,000 in year 1; $5,000 in year 2; $25,000 in year 3; and $25,000 in year 4 and 5 1.The total investment for this project is $12,000. 2.Since this is project to replace a critical equipment of the production line, the company needs to select one project from the above options. 3. Please show your work for points (hence, you will need to calculate the net present value of each option).

Financial Management, Finance

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