Company has $300,000 to invest and wishes to evaluate the following three projects.

years X($) Y($) Z($)

0 (100,000) (120,000) (90,000)

1 40,000 70,000 70,000

2 40,000 50,000 10,000

3 40,000 40,000 20,000

4 40,000 20,000 -

cost of capital 12% 12% 12%

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Which project(s) would you recommend using:

a.Payback Period (PP) in nominal and discounted values.

b.Net Present Value (NPV)

c.Profitability Index (PI)

d.The internal rate of return (IRR) (hint: use 30% for X and Y, and 5% for Z)