1.Suppose you have recently joined M, Inc., and your manager has asked you to help him evaluate the following mutually exclusive projects. The company's board of directors has set a maximum 4-year payback requirement and has set its cost of capital at 10%. The cash inflows associated with the three projects are shown in the following table.

CASH FLOWS YEAR A B C (100,000) (120,000) (90,000) $35,000 $25,000 $15,000 $55,000 $30,000 $20,000 W N $45,000 $50,000 $50,000 $25,000 $60,000 $60,000 5 $15,000 $70,000 $50,000