John Andrews, the CFO of Fitch Services is trying to select the best investment from among four proposals submitted by his divisional managers.
Each proposal involves an initial outlay of $120,000. Their cash flows follow:
Year	Emily	Frank	Gina	Henrique
1	$ 24,000	$72,000	$36,000	$ -
2	30,000	42,000	36,000	-
3	30,000	36,000	36,000	54,000
4	54,000	-	36,000	78,000
5	66,000	-	36,000	119,000
Evaluate and rank each alternative based on a) payback period, b) net present value (use a 15% discount rate), and c) internal rate of return.
Be sure to show your work in an excel file!
Cost		$120,000
Discount Rate		15%
a) What is the Payback Period for for each alternative?
	Emily
	Frank
	Gina
	Henrique
Which alternative would you choose using the payback period?
b) What is the Net Present Value for each project using a 15% discount rate?
	Emily
	Frank
	Gina
	Henrique
Which alternative would you choose using the NPV using a 15% discount rate?
c) What is the IRR for each Project?
	Emily
	Frank
	Gina
	Henrique
Which alternative would you choose using the IRR?