question on npv, ppa, irr and cb

and on payback calculations

In this assignment, NPV, PPA, IRR and CBA stand for net present value, payback period analysis, internal rate of return and cost-benefit analysis, respectively. They represent four project appraisal techniques. Part A (1) A, B and C are three options of a project. They are mutually exclusive. Table 1 shows the Initial capital cost, annual income, and annual expenditure of each option. The three options have the same economic life of 10 years. Assuming the discount rate of 8%, determine the acceptability of each option and then select the best option using the NPV method. Table 1 Initial capital cost Annual income Annual expenditure Option A 10.0 million 5.0 million 2.0 million Option B 15.0 million 7.0 million 3.0 million Option C 17.0 million 8.0 million 4.0 million (2) For the three options of the project in Table 1, calculate the payback period of each option and then select the best option through PPA with interest. (3) Compare the result of NPV and the result of PPA. Explain why there is difference between NPV selection and PPA selection Part B