Q1Mr Ali has an option of investing in one project from the proposed three different projects. The initial investment and cash flows are given below

years

Cf - project 1

Cf - project 2

Cf - project 3

0

(10,000)

(28,000)

(22,000)

1

1000

3000

4000

2

880

7000

1000

3

6000

8000

1000

4

4000

12000

9000

5

2000

7500

11500

6

3650

6400

8900

a.Calculate payback for all three projects

b.Calculate discounted payback for all three projects

c.Calculate NPV for all three projects

d.Calculate profitability index for all three projects

e.Calculate IRR for all three projects

f.write a detailed comment on which project Mr Ali must invest on the basis of above calculated criteria's and why he must ignore the other projects.