Please Help!!!

Now the president is starting to get on your nerves. But, whaddayagonnado? He is the president. You just wish he wasnt so demanding. Nevertheless, you press on. He has informed you that you need to aid in a decision regarding a new facility. There are 3 mutually exclusive locations being considered each with its own startup cost and projected cash flows as shown below:

	Timbuktu	Neverland	Middle Earth
Cost	$3,600	$8,750	$6,500
Year 1 CF	$0	$4,000	$2,000
Year 2 CF	0	4,000	2,000
Year 3 CF	0	1,500	2,000
Year 4 CF	0	0	2,000
Year 5 CF	$8,500	3,000	3,000

The president has asked for a thorough analysis. Keeping in mind DWOTTs cost of capital (use WACC above)(9.29%), what decision should be made regarding the projects above using each of the following tools:

What is each project's payback period and which would you choose?

Timbuktu:

Neverland:

Middle Earth:

Choice & Why?

What is each project's discounted payback period and which would you choose?

Timbuktu:

Neverland:

Middle Earth:

Choice & Why?

What is each project's net present value and which would you choose?

Timbuktu:

Neverland:

Middle Earth:

Choice & Why?

What is each project's internal rate of return and which would you choose?

Timbuktu:

Neverland:

Middle Earth:

Choice & Why?

What is each projects modified internal rate of return and which would you choose?

Timbuktu:

Neverland:

Middle Earth:

Choice & Why?

Considering the WACC and given the calculations above, which project do you prefer, and why?