Rearrange the steps followed in evaluating an investment proposal using the NPV method-
(A) Calculate the present value of cash flows
(B) Identify an appropriate discount rate
(C) Forecasting cash flows
(D) Rank the projects as per NPV
(E) Compute the net present value
Choose the correct answer from the options given below:
1
(B), (E), (A), (D), (C)
2
(A), (B), (C), (D), (E)
3
(C), (B), (A), (E), (D)
4
(D), (A), (C), (B), (E)