Citco Company is considering investing up to $465,000 in a sustainability-enhancing project. Its managers have narrowed their choices to three potential projects.

• Project A would redesign the production process to recycle raw materials waste back into the production cycle, saving on direct materials costs and reducing the amount of waste sent to the landfill.
• Project B would remodel an office building, utilizing solar panels and natural materials to creaate a more energy-efficient and healthy work environment.
• Project C would build a new training center in an underserved community, providing jobs and economic security for the local community.

Required: 1. Assuming the cost of capital is 10%, complete the table below by computing the payback period, NPV, Profitability Index, and Internal Rate of Return. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your "NPV" answers to the nearest whole dollar amounts. Round your "PI" and "IRR" answers to 2 decimal places.) Project A Project B Project C (Redesign production (Remodel office (New training process building) facility) Required investment S (465,000) (558,000) S (316,000) Annual cost savings S 93,000 S 62,000 S 79,000 Project life 8 years 10 years 6 years Salvage value $ 86,000 62,000 S 25,000 Payback period years years years NPV @ 10% Profitability index @ 10% Internal rate of return % % 2. Based strictly on the economic analysis, in which project should they invest? O Project A O Project B Project C