Kimpling is considering three projects.

The cash flows for each are shown in the following table.

The firm has a 15% cost of capital, and each projects initial investment amounts to $42,000.

1. Calculate each projects payback period and indicate which project is preferred

2. Calculate each projects NPV and indicate which project is preferred.

3. Which project would you recommend?

	Cash inflows
Year	Project A	Project B	Project C
1	$13,100	$7,500	$18,000
2	$13,100	$9,700	$15,000
3	$13,100	$14,200	$14,000
4	$13,100	$15,500	$11,000
5	$13,100	$19,300	$8,000