1. Your firm faces the following investment alternatives, and can only select one project. Time 0 Time 1 Time 2 Time 3 Project A -5,000 5,000 4,000 3,000 Project B -5,000 4,000 3,000 10,000 Project C -5,000 3,000 4,000 5,000 Project D -5,000 4,000 4,000 4,000 Project E -5,000 2,000 6,000 10,000 a) Calculate the payback period for each project (Note: assume cash flows can be divided into months to get a more precise payback period. Eg. If the investment is 5,000 and you receive 4,600 in year 1 and 2,400 in year 2, then the payback period is 1 year and 2 months, since in year 2 you receive 2,400/12 = 200 per month). If your company wants the shortest payback period possible, which project should you choose? (3 marks) b) Calculate the IRR for each project. Which project should you choose? (3 marks) c) Calculate the NPV for each project if the cost of capital is 6%. Which project should you choose