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NPV

Although Project B has the highest NPV, what if we do not want to (can’t) spend the $20 for the cash outlay? Would Project A be a better choice? Should this affect our choice of projects?  

What if you will need more than $144 next year, is Project C then a good choice?

As long as we are able to borrow and lend at today’s interest rate, Project B is superior whatever our preferences regarding the timing of the cash flows.

Again, this follows from the same logic as the gold for silver trade in your text.  Let’s see…

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