1. The company has 2 proposed projects. Here are the projects net cash flows (in thousands of dollars). The CFO has determined the weighted average cost of capital to be 10 percent.

Expected Net Cash Flow
Year	Project L	Project S
0	($100)	($100)
1	35	60
2	75	75
3	150	125
4	50	100

1. What is the payback period for projects L & S?
2. What is the net present value (NPV) of each project?
3. What is the internal rate of return (IRR) for each project?
4. What is the modified internal rate of return (MIRR) for each project?
5. Which method is the best? Why?