Payback and NPV : Neil Corporation has three projects under consideration. The cash flows for each of them are shown in the following? table:

Project A Project B Project C

Initial investment $30,000 $30,000 $30,000

Year Cash Inflows

1 $12,000 $8,000 $16,000

2 $12,000 10,000 $14,000

3 $12,000 $12,000 $12,000

4 $12,000 $14,000 $10,000

5 $12,000 $16,000 $8,000

The firm has a cost of capital of 15?%.

a.??Calculate each? project's payback period. Which project is preferred according to this? method0? Project A, Project B, Project C

b.??Calculate each? project's net present value ?(NPV). Which project is preferred according to this? method? Project A, Project B, Project C