All techniques: 13 Decision among mutually exclusive investmentsPound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and subsequent cash inflows associated with these projects are shown in the following table.

Cash flows	Project A		Project B		Project C
Initial investment (CF)	$90,000		$130,000		$130,000
Cash inflows (CF), t=1 to 5	$30,000		$42,000		$42,500

a.Calculate the payback period for each project.

b.Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to

11%.

c.Calculate the internal rate of return (IRR) for each project.

d.

Indicate

which project you would recommend.