*ANSWER ONLY PART B PLEASE*

The Three Stages partnership is considering three long-term capital investment proposals. Each investment has a useful life of five years. Relevant data on each project are as follows:

		Project Main			Project Odyssey			Project Duo
Capital investment:		$163,500			$174,400			$204,000
Annual net income:
Year 1		$14,170			$19,620			$29,430
2		14,170			18,530			23,980
3		14,170			17,440			22,890
4		14,170			13,080			14,170
5		14,170			9,810			13,080
Total		$70,850			$78,480			$103,550

Depreciation is calculated by the straight-line method and there is no salvage value. The companys cost of capital is 15%. (Use average net annual cash flows in your calculations.)

(a)

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Calculate the cash payback period for each project. (Round answers to 2 decimal places, e.g. 15.25.)

		Payback period
Project Main		3.49	years
Project Odyssey		3.30	years
Project Duo		3.10	years

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(b)

Calculate the net present value for each project. (If the answer is negative, use either a negative sign preceding the number e.g. -5,275 or parentheses e.g. (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) Click here to view PV table.

		Net present value
Project Main		$
Project Odyssey		$
Project Duo		$

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(c)