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

a$.$ Calculate each project's payback period. Which project is preferred?

b$.$ Calculate each project's net present value $($NPV$)$ assuming a$($n$)12\%$ cost of capital. Which project is preferred according to this method?

c$.$ Comment on your findings in parts a and $b,$ and recommend the best project.

Data table

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[,$Project A$,$Project B$,$Project C$],[$Initial investment $($CF$\_(0)),$$$50,000,$$$50,000,$$$50,000],[$Year $($t$),$Cash inflows $($CF$\_($t$))],[1,$$$18,000,$$$2,000,$$$34,000],[2,$$$18,000,$$$10,000,$$$26,000],[3,$$$18,000,$$$18,000,$$$18,000],[4,$$$18,000,$$$26,000,$$$10,000],[5,$$$18,000,$$$34,000,$$$2,000]]$