1. Facts Enterprises is trying to select the best investment from among four alternative independent projects presented by their respective firms. Each alternative involves an initial outlay of $80,000 and a 12% cost of capital. Management requires that all project investments should be recovered in 4 years. Their cash flows follow:

Year	Sun Ltd	Moon Ltd	Best Ltd	Pep Ltd
1	50,000	20,000	25,000
2	40,000	30,000	25000
3	30,000	20,000	25,000	30,000
4	20,000	10,000	25,000	25,000
5	10,000	30,000	25,000	25,000
6	5,000			30,000

i) Calculate each project's Payback Period

(ii) Calculate each project's Net Present Value (NPV)

(iii) Which project should the firm accept under each technique?