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2 POTENTIAL CAPITAL PROJECTS HAVE THE FOLLOWING ESTIMATED CASHFLOWS PROJECT 1 PROJECT 2 YEAR 2 3 4 5 6 CASHFLOW $95,000 $150,000 $1,000 $12,000 $45,000

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2 POTENTIAL CAPITAL PROJECTS HAVE THE FOLLOWING ESTIMATED CASHFLOWS PROJECT 1 PROJECT 2 YEAR 2 3 4 5 6 CASHFLOW $95,000 $150,000 $1,000 $12,000 $45,000 $198,000 CASHFLOW $112,000 $95,000 $85,000 $65,000 $10,000 $15,000 BOTH PROJECTS HAVE A COST OF $300,000. THE COST OF CAPITAL IS 9.5% A. CALCULATE THE PAYBACK FOR EACH PROJECT. STATE IF THE PROJECT IS ACCEPTABLE UNDER PAYBACK AND WHY. STATE IF THE PROJECT IS B. CALCULATE THE NPV FOR EACH PROJECT. ACCEPTABLE UNDER NPV AND WHY. C. CALCULATE THE IRR FOR EACH PROJECT. STATE IF THE PROJECT IS ACCEPTABLE UNDER IRR AND WHY. STATE IF THE PROJECT IS D. CALCULATE THE PI FOR EACH PROJECT. ACCEPTABLE UNDER PI AND WHY. E. STATE WHICH IS THE BEST PROJECT OVERALL AND WHY

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