Rania Company has $260,000 to invest and wishes to evaluate the following three projects.

Years

A ($)

B ($)

C ($)

0

(100,000)

(80,000)

(140,000)

1

40,000

40,000

30,000

2

40,000

30,000

40,000

3

40,000

20,000

60,000

4

40,000

10,000

60,000

cost of capital

15%

15%

15%

Required:

Which project(s) would you recommend using:

a.Payback Period (PP) in nominal and discounted values.

b.Net Present Value (NPV)

c.Profitability Index (PI)

d.The internal rate of return (IRR) (hint: use 2% or 25%)