Capital Rationing

Suppose you are the financial manager of a firm considering the following five projects $($expand below to see the five projects$).$

Five Projects Under Construction

Project A Project B Project C Project D Project E

Initial Investment $-$$$100,000-$$$150,000-$$$140,000-$$$60,000-$$$1,500$

Year $1$ $$50,000$ $$50,000$ $$60,000$ $$40,000$ $$1,000$

Year $2$ $$40,000$ $$50,000$ $$40,000$ $$20,000$ $$250$

Year $3$ $$20,000$ $$50,000$ $$35,000$ $$20,000$ $$100$

Year $4$ $$10,000$ $$50,000$ $$25,000$ $$20,000$ $$100$

Year $5$ $$50,000$ $$20,000$ $$100$

Year $6$ $$20,000$ $$100$

Calculate the Payback Period for each project.

Calculate the NPV for each project, assuming a discount rate of $11\mathrm{.}1\%.$

Calculate the IRR for each project.

Which projects should the firm implement based on your analysis If the projects are mutually exclusive? What if they are independent and $$400,000$ in capital funding is available?