1. An investor has to pick one of the following three projects A, B or C. The cash flows from each project are given in the table below. Discount factor is 10 percent

	Project A	Project B	Project C
Year 0	-800	-150	-500
Year 1	500	120	300
Year 2	300	30	200
Year 3	200	50	50
Year 4	500	100	60
Year 5	1200	120	80

You can use excel to answer the following questions.

1. What is the payback period of each project? According to the payback period which project would you prefer?
2. What is the NPV of each project? According to the NPV which project would you prefer?
3. What is the IRR of each project? According to the IRR which project would you prefer?