R Noble, Agricultural Engineers are considering an investment programme. It has a choice of three projects each of which cost 60000, but capital is limited in supply to 60000. The firms existing return on capital is 15% and, in this case, this is assumed to be their cost of capital for appraisal purposes. Project A Project B Project C Hydraulic Ramps Workshop Modification to metal cutting machine Special Delivery vehicle Year (60,000) 17,000 13,000 20,000 20,000 18,000 0 (60,000) (60,000) 1 10,000 21,000 2 18,000 25,000 3 25,000 15,000 4 17,000 17,000 5 20,000 10,000 You are required to: a) Calculate the PBP, NPV and IRR for each project (12 marks) b) Recommend with reasons, which project