The Net Present Value (NPV) of a combined project is simply the sum of the NPVs of its individual projects, as long as the projects are independent and their cash flows can be directly added.

Calculation:

• NPV of Project A = $+120$
• NPV of Project B = $-40$
• NPV of Project C = $+40$

Combined NPV = $120 - 40 + 40 = 120$

Final Answer:

The NPV of the combined project is $120.

Let me know if you’d like further clarification or a more detailed breakdown!

Related Questions:

1. What does a negative NPV indicate in decision-making?
2. How do you calculate the NPV of a single project from its cash flows?
3. What assumptions are implicit when combining NPVs of projects?
4. How does discount rate affect NPV calculations?
5. What happens to the combined NPV if Project B’s value changes?

Tip:

Always ensure the projects are independent when summing NPVs, as interdependencies can alter cash flows and affect the combined project's NPV.