Question 1 A firm has available four different mutually exclusive projects, A, B, C, and D. Each costs an initial 3,000 GBP and runs for two years with the cash flows given in the table below. The market interest rate is 10%. Which project would be chosen according to the following capital budgeting techniques: (a) the payback method, (b) the accounting rate of return, (c) the net present value, and (d) the internal rate of return.

	A	B	C	D
t=0	-3000	-3000	-3000	-3000
t=1	15000	0	3999	3300
t=2	-18000	3630	3999	0