JUST PART B

The Three Stages partnership is considering three long-term capital investment proposals. Each investment has a useful life of five years. Relevant data on each project are as follows:

Project MainProject OdysseyProject DuoCapital investment:$163,500$174,400$204,000Annual net income:Year 1$14,170$19,620$29,430214,17018,53023,980314,17017,44022,890414,17013,08014,170514,1709,81013,080Total$70,850$78,480$103,550

Depreciation is calculated by the straight-line method and there is no salvage value. The company's cost of capital is 15%. (Use average net annual cash flows in your calculations.)

(a)

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Calculate the cash payback period for each project.(Round answers to 2 decimal places, e.g. 15.25.)

Payback periodProject MainyearsProject OdysseyyearsProject Duoyears

Attempts: 1 of 1 used

(b)

Calculate the net present value for each project.(If the answer is negative, use either a negative sign preceding the number e.g. -5,275 or parentheses e.g. (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)