Given the following four projects and their cash flows,

a) Using a discount rate of 10%, calcu

	A	B	C	D
Cost	$10,000	$25,000	$45,000	$100,000
Cash Flow Year 1	$4,000	$2,000	$10,000	$40,000
Cash Flow Year 2	$4,000	$8,000	$15,000	$30,000
Cash Flow Year 3	$4,000	$14,000	$20,000	$20,000
Cash Flow Year 4	$4,000	$20,000	$20,000	$10,000
Cash Flow Year 5	$4,000	$26,000	$15,000	$10,000
Cash Flow Year 6	$4,000	$32,000	$10,000	$0

late the NPV and then make a decision for (24 pts.)

i) Project A Answer: NPV = _______________ Decision: ____________________________________

i) Project C Answer: NPV = _______________ Decision: ____________________________________

b) For each project, calculate the discounted payback period with a 5% discount rate. If managements established expected payback period is three years, what recommendations would you, as a project manager, make to management? (20 pts.)

c) Calculate the IRR (Internal Rate of Return) for Projects B and D. What recommendations would you make to management? Give the reason(s) for your recommendations. (15 pts.)