*Please dont use excel.

a) Calculate each project's payback period and state which alternative should be accepted based on this criterion.

(b) Calculate each project's internal rate of return (IRR) and using a hurdle rate of 15%, state which of the opportunities is acceptable by this criterion.

(c) Discuss the possible reasons why the above two project appraisal methods do not give answers which are consistent with each other, for the accept/reject decision. Which should the board employ? Why?

(d) Discuss some of the elements which should be considered when determining the appropriate hurdle rate for an individual project

Project Sales Direct costs Depreciation Interest Initial investment Project life (years) A B C D S 40,000 60,000 75,000 60,000 16.000 27,000 15000 18000 40,000 35.000 30.000 8,000 16000 9,000 000 12,000 120,000 160.000 90,000 70,000 118 151 10 10