All

techniqueslong dashDecision

among mutually exclusive investments???Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and? after-tax cash inflows associated with these projects are shown in the following table.

Cash flows	Project A		Project B		Project C
Initial investment? (CF)	?$60 comma 00060,000		?$100 comma 000100,000		?$100 comma 000100,000
Cash inflows? (CF), tequals=1 to 5	?$20 comma 00020,000		?$31 comma 00031,000		?$31 comma 50031,500

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

1212?%.

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

d.??

Indicate

which project you would recommend.a.??The payback period of project A is

nothing

years.???(Round to two decimal? places.)The payback period of project B is

nothing

years.???(Round to two decimal? places.)The payback period of project C is

nothing

years.???(Round to two decimal? places.)b.??The NPV of project A is

?$nothing.

?(Round to the nearest? cent.)The NPV of project B is

?$nothing.

?(Round to the nearest? cent.)The NPV of project C is

?$nothing.

?(Round to the nearest? cent.)c.??The IRR of project A is

nothing?%.

?(Round to two decimal? places.)The IRR of project B is

nothing?%.

?(Round to two decimal? places.)The IRR of project C is

nothing?%.

?(Round to two decimal? places.)

d.??Which project would you? recommend????(Select the best answer? below.)

A.

Project Upper CProject C

B.

Project Upper BProject B

C.

Project Upper AProject A