Payback and NPV Neil Corporation has three projects under consideration. The cash flows for each of them are shown in the following table: The firm has a cost of capital of 18%. a. Calculate each project's payback period. Which project is preferred according to this method? b. Calculate each project's net present value (NPV). Which project is preferred according to this method? C. Comment on your findings in parts a and b, and recommend the best project. Explain your recommendation. a. The payback period of project Aisyears. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places.) The payback period of project Cis years. (Round to two decimal places.) According to the payback method, which project should the firm choose? (Select the best answer below.) Data Table - X O A. Project C O B. Project B OC. Project A (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) b. The NPV of project A is $7. (Round to the nearest cent.) Project $50.000 Project C $50,000 The NPV of project B is $ (Round to the nearest cent.) Initial investment (CFO) Year (0) The NPV of project is $ (Round to the nearest cent.) Project B $50,000 Cash inflows (CF) $2,000 $10,000 $18,000 $26,000 $34,000 According to the NPV method, which project should the firm choose? (Select the best answer below.) $18,000 $18,000 $18,000 $18,000 $18,000 UWN $34,000 $26,000 $18,000 $10,000 $2,000 O A. Project C O B. Project B OC. Project A Print Done c. Comment on your findings in parts a and b, and recommend the best project. Explain your recommendation. (Select the best answer below.) O A. Project B is the best project because it has the most realistic NPV. OB. Project C is the best project because it has the highest NPV. OC. Project A is the best project because it has the lowest NPV. Click to select your answer(s)