Rana Company has $300,000 to invest and wishes to evaluate the following three projects.

Years	X ($)	Y ($)	Z ($)
0	(100,000)	(120,000)	(90,000)
1	40,000	70,000	70,000
2	40,000	50,000	10,000
3	40,000	40,000	20,000
4	40,000	20,000
cost of capital	12%	12%	12%

Required:

Which project(s) would you recommend using:

1. Payback Period (PP) in nominal and discounted values.
2. Net Present Value (NPV)
3. Profitability Index (PI)
4. The internal rate of return (IRR) (hint: use 30% for X and Y, and 5% for Z)