All techniquesDecision among mutually exclusive investmentsPound 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)	$80,000		$110,000		$110,000
Cash inflows (CF), t=1 to 5	$25,000		$36,500		$37,500

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 13%.

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

d. Indicate which project you would recommend.