Consider the following mutually exclusive projects: Projects C () C () C () C () C () A -8,000 4,000 3,000 2,000 10,000 B -10,000

Consider the following mutually exclusive projects:

Projects	C₀ (₹)	C₁ (₹)	C₂ (₹)	C₃ (₹)	C₄ (₹)
A	-8,000	4,000	3,000	2,000	10,000
B	-10,000	3,000	3,000	4,000	6,000
C	-7,000	2,000	3,500	2,500	5,000
D	-5,000	2,000	2,500	3,000	3,500

Required:

1. Calculate the payback period for each project.
2. If the standard payback period is 3 years, which project will you select?
3. Compute the NPV of each project if the cost of capital is 8%. Which project will you recommend based on NPV?
4. Calculate the IRR for each project.

Compare the projects based on both NPV and IRR criteria and make a recommendation