Please show calculations to help my understanding

1. Assume you have $20,000 to invest and must choose between two investments. Expected net cashflows over the 6-year investment are shown in the table below.

1. Analyze both investments using the payback period, simple rate of return, net present value and internal rate of return methods using a 4 percent discount rate.

2. For each investment analysis method, which investment would you select?

3. Calculate the Net Present Value of Investment A and B using a 6% discount rate. Does your preferred investment change? Why or why not?

4. Now assume you have a third investment possibility to consider. Investment C is estimated to return $6,000 a year for 6 years and has an initial investment of $22,000. Calculate the profitability index for Investments A, B and C using a 5% discount rate. Which is the preferred investment using this capital investment analysis method?

Year	Investment A	Investment B
0	(20,000)	(20,000)
1	5,000	1,000
2	5,000	4,000
3	5,000	4,000
4	5,000	4,000
5	5,000	8,000
6	5,000	10,500