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Cavu Air Inc., a drone manufacturer, is reviewing its annual budget. It is considering investments in...

Cavu Air Inc., a drone manufacturer, is reviewing its annual budget. It is considering investments in three different technologies. Consider the following cash flows of the three independent projects. Assume a discount rate of 11% percent. The company has $20 million to invest in projects this year.

Required return is 11%

Annual cash flows

Projects A B C
Year 0           $ (8,000,000)     $ (12,000,000)     $ (20,000,000)
Year 1 $11,000,000 $15,000,000 $18,000,000
Year 2 $7,500,000 $25,000,000 $32,000,000
Year 3 $2,500,000 $21,000,000 $20,000,000

Based on the NPV, rank these investments.
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