Mr Ali has an option of investing in one project from the proposed three different projects. The initial investment and cash flows are given below. (r = 12%)

years

Cf project 1

Cf project 2

Cf project 3

0

(10,000)

(28,000)

(22,000)

1

1000

3000

4000

2

880

7000

1000

3

6000

8000

1000

4

4000

12000

9000

5

2000

7500

11500

6

3650

6400

8900

a. Calculate payback for all three projects[1 marks]

b. Calculate discounted payback for all three projects[1 marks]

c. Calculate NPV for all three projects[2 marks]

d. Calculate profitability index for all three projects[1 marks]

e. Calculate IRR for all three projects