For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each capital budgeting decision tool, indicate if the project should be accepted or rejected, assuming that each project is independent of the others. Important Note: The venture capital folks have a firm maximum payback period of four years.

Expected cash flows for the four potential projects that Belfry is considering as shown below:

Year	Project A	Project B	Project C	Project D
0	-$8,250,000	-$7,000,000	-$6,000,000	-$5,500,000
1	$1,250,000	$2,000,000	$2,000,000	$1,400,000
2	$1,500,000	$2,000,000	$2,000,000	$1,500,000
3	$2,000,000	$2,000,000	$2,000,000	$1,000,000
4	$2,500,000	$2,000,000	$1,500,000	$1,000,000
5	$2,500,000	$1,200,000	$500,000	$1,000,000
6	$2,500,000	$500,000		$1,000,000
7	$2,000,000	$500,000		$500,000
8		$500,000		$500,000
9		$250,000
10		$250,000

Below the grid is where you should show all your required backup calculations (this means your cash flow register inputs, the interest rate, PI calculation and cumulative cash flows for payback). If you are working this in Excel, feel free to submit your Excel sheet, where the equations in the cells will provide the required backup. Be sure to clearly indicate the required rate of return for each project(provided below).

		Year	Project A	Project B	Project C	Project D
		Req. Return (use 2 decimals xx.xx%)	13.55%	12.70%	16.10%	9.30%
		NPV (to nearest $1)
		NPV accept/reject
		IRR (xx.xx%)
		IRR accept/reject
		PI (show 2 decimals, x.xx)
		PI accept/reject
		Payback Period (x.x years)
		Payback accept/reject