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Medical Technology Enterprises is trying to select the best investment from among four alternatives. The company's cost of capital (WACC) is 12%. The initial cost

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Medical Technology Enterprises is trying to select the best investment from among four alternatives. The company's cost of capital (WACC) is 12%. The initial cost and future cash flows of the alternatives are presented below (See pages 383 390). You can use Excel to solve this problem. If you do, please submit your homework document and the Excel file. Year 0 1 2. 3 4 5 Alternative A ($) Alternative B (S) Alternative C($) Alternative D ($) -400,000 -400,000 -400,000 -400,000 250,000 0 100,000 50,000 150,000 0 100,000 100,000 170,000 120,000 100,000 100,000 80,000 180,000 100,000 400,000 40,000 500,000 100,000 0 (If you are not submitting an Excel file, PLEASE SHOW YOUR WORK for parts C and E) A) Calculate the Payback period for each alternative and complete the following table (round to two decimal places): Alternative A Alternative B Alternative C Alternative D Payback period B) Which of the alternatives would you select under the payback method? Please explain why. C) Calculate the net present value (NPV) for each alternative and complete the following table (round to whole numbers): Alternative A Alternative B NPV Alternative C Alternative D D) Which of the alternative would select under the net present value? Please explain why. E) Calculate the internal rate of return (IRR) for each alternative and complete the following table (round to two decimal places): Alternative A Alternative B IRR Alternative C Alternative D F) Which of the alternative would you select under the internal rate of return? Please explain why

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