All techniqueslong dashDecision

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.

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.

Cash flows Initial investment (CF) Cash inflows (CF), t = 1 to 5 Project A $30,000 $10,000 Project B $60,000 $21,500 Project C $70,000 $22,500