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Bajaw, Inc., are currently evaluating the following two projects: Year Cashflow (A) Cashflow (B) 0 -80,000 -100,000 1 45,000 10,000 2 25,000 40,000 3

 Bajaw, Inc., are currently evaluating the following two projects: 

 

YearCashflow (A)Cashflow (B)
0-80,000-100,000
145,00010,000
225,00040,000
320,00045,000
410,000120,000

 

Assuming the discount rate is 10% Select the best project according to each of the following evaluation method? (Make sure you show your final calculation for each evaluation method used) 

-Payback period 

-NPV for project 

-IRR for project 

-PI for project 

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Solution Here are the calculations for each evaluation method 1 Payback Period Project A Year 1 80000 45000 35000 Year 2 35000 25000 10000 Year 3 1000... blur-text-image

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