Salam Company has $1,800,000 to invest and wishes to evaluate the following three projects.

Years X($) Y($) Z($)

0 840,000 900,000 900,000

1 300,000 540,000 600,000

2 300,000 120,000 260,000

3 300,000 240,000 300,000

4 300,000 360,000

Cost of Capital 10% 10% 10%

Required:

1-Which project(s) would you recommend using:

a.Payback Period (PP)

b.Net Present Value (NPV)

c.Profitability Index (PI)

The internal rate of return (IRR) (hint: use 23%)