A company is looking at launching a new business line and is considering the following options: Product A, B or C, with the following initial investments and expected cash flows:

Where should the company expand if its objective is the shortest payback period possible ?

Calculate the net present value (NPV), benefit cost ratio (BCR), internal rate of return (IRR) and equivalent annual annuity (EAA) of each project and confirm wether the payback objective of the company is inline with the most profitable project. (Please show excel sheet formulas and workings)

	Product A	Product B	Product C
II (initial Investment)	150,000	675,000	190,000
Cash flow year 1	25,000	200,000	60,000
Cash flow year 2	35,000	150,000	55,000
Cash flow year 3	45,000	175,000	35,000
Cash flow year 4	50,000	350,000	90,000