Npv of marques gourmet coffee

CSS Cash flow year 3 Cash flow year 4 Cash flow year 5 4,00U 5,000 7,000 4,000 4,000 Help Jane answer the following questions. Questions 1. Compute the payback period for each project. a. Explain the rationale behind the payback method. b. State and explain the decision rule for the pay- back method. c. Explain how the company would use the payback method to rank mutually exclusive projects. d. Comment on the advantages and shortcomings of this method. 2. Compute the discounted payback period for each project using a discount rate of 10%. a. Explain the rationale behind the discounted pay- back method. CSS Cash flow year 3 Cash flow year 4 Cash flow year 5 4,00U 5,000 7,000 4,000 4,000 Help Jane answer the following questions. Questions 1. Compute the payback period for each project. a. Explain the rationale behind the payback method. b. State and explain the decision rule for the pay- back method. c. Explain how the company would use the payback method to rank mutually exclusive projects. d. Comment on the advantages and shortcomings of this method. 2. Compute the discounted payback period for each project using a discount rate of 10%. a. Explain the rationale behind the discounted pay- back method