1. The Blue Company is considering three long-term capital investment proposals. Each investment has a life of 5 years. Relevant data on each project are as follows:

	Project 1	Project 2	Project 3
Capital Investment 0	$160,000	$175,000	$200,000
Year 1	14,000	18,000	23,000
Year 2	14,000	18,000	23,000
Year 3	14,000	18,000	23,000
Year 4	14,000	18,000	23,000
Year 5	14,000	18,000	23,000
Total	$70.000	$90,000	$115,000

The companys cost of capital is 15%.

• Compute the cash payback period for each project.
• Compute the net present value for each project.
• Compute the IRR for each project.