NPV = - I.O / (1+r)n + NCF /(1+r)n
a) NPVa=−79,000+(30,000−7,000)×1.081−1(1.081)7−1=50,326.23
NPVb=−110,000+(60,000−35,000)×1.081−1(1.081)8−1=45,159.25
NPVc=−244,000+(58,500−18,500)×1.081−1(1.081)10−1−1.081030,000=31,979.72
ABC Ltd should choose project A since it has the highest NPV
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