Sabah Company has $900,000 to invest and wishes to evaluate the following three projects.

Years	X ($)	Y ($)	Z ($)
0	(420,000)	(450,000)	(450,000)
1	150,000	270,000	300,000
2	150,000	60,000	130,000
3	150,000	120,000	150,000
4	150,000	180,000
cost of capital	12%	12%	12%

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 30% for X and Y, and 5% for Z)