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SML Investment Ltd evaluating three mutually exclusive investment projects. Cash flows associated with these three projects have given below. Plan A Plan B Plan C

SML Investment Ltd evaluating three mutually exclusive investment projects. Cash flows associated with these three projects have given below.

Plan A

Plan B

Plan C

Initial Outlay

-58,000

-60,000

-130,000

Year 1

28,000

14,500

37,200

Year 2

23,000

16,000

37,200

Year 3

15,000

37,200

Year 4

29,300

14,200

37,200

Year 5

36,800

37,200

The company expect 13% return on similar project.

You are required to estimate the net present value, profitability index and the payback period of each project.

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