2. Your firm has faces the following investment alternatives, and can only select one project.

	Project A	Project B	Project C	Project D	Project E
Time 0	-10,000	-10,000	-10,000	-10,000	-10,000
Time 1	5,000	4,000	3,000	4,000	2,000
Time 2	4,000	3,000	4,000	4,000	6,000
Time 3	3,000	10,000	5,000	4,000	10,000

a) Calculate the payback period for each project. 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 8%. Which project should you choose? (3 marks)