The cash flows for projects A, B and C are given below. Calculate the payback period and net present value for each project (assume a 10% discount rate). If A and B are mutually exclusive projects and C is independent, which project, or combination of projects, is preferred using (a) the payback period or (b) the net present value method? What do the results tell you about the value-additivity properties of the payback method?

Year	A	B	C
0 1 2 3	-1 0 2 -1	-1 1 0 1	-1 0 0 3