4 projects are given below with their initial investment and projected cash flow in a period of 5 years. Select the best one taking NPV as selection criteria.
A : Investment - $1000, PCF - $3000
B : Investment - $1500, PCF - $2200
C : Investment - $1800, PCF - $1250
D: Investment – $3200, PCF -$ 3000
Options
- Project A with NPV $2000
- Project A with NPV $3000
- Project B with NPV $2200
- Project D with NPV $3000
CORRECT ANSWER : Project A with NPV $2000
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