Stowe Company has the following three investment opportunities.

	A	B	C
Cost	$70,000	$70,000	$70,000
Cash inflow by year
Year 1	$35,000	$35,000	$4,000
Year 2	35,000	10,000	8,000
Year 3	-	45,000	10,000
Year 4	5,000	20,000	98,000
Total	75,000	110,000	120,000

Rank the investment opportunities in order of desirability using (a) payback, (b) NPV and, (c) irr.

For the NPV, use a hurdle rate of 16%.

Stowe Company has the following three investment opportunities. Cost $70,000 $70,000 $70,000 Cash inflow by year Year 1 Year 2 Year 3 Year 4 Total $35,000 35,000 $35,000 10,000 45,000 20,000 110,000 $4,000 8,000 10,000 98,000 120,000 5,000 75,000 Rank the investment opportunities in order of desirability using (a) payback, (b) NPV and, (c) in For the NPV, use a hurdle rate of 16%