Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table.

Cash flows		Project A		Project B		Project C
Initial investment (CF)		$140,000		$170,000		$170,000
Cash Flows (CF) T= 1 to 15		$45,000 $56,500 57,000

a. Calculate the payback period for each project.

b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 8%.

c. Calculate the internal rate of return (IRR) for each project.

d.Indicate which project you would recommend.

a.The payback period of project A is .............years.

The payback period of project B is.............years.

The payback period of project C is...........years.

b The NPV of project A is $ ____________.

c. The NPV of project B is $__________.

d. The NPV of project C is $___________.

e. The IRR (Internal rate of return) for project a,b,c.

f. Indicate which project you would recommend.