The following 3 projects have an initial investment of 1,500K but have different yearly cash flows and different lives. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Table 1: Project cash flow comparison. Project B (1,500K) 600K 450K 450K 300K Project A (1,500K) 150K 300K 450K 375K 450K 510K a) Compare the 3 projects by calculating their payback periods Project C (1,500K) 450K 450K 450K 450K 300K 150K [3 Marks] b) Compare the 3 projects by calculating their average gross annual rates of return [6 Marks] c) Compare the 3 projects by their Net Present Values using a discount factor of 5.0% [12 Marks] d) Which project would you recommend the company to choose and why?

The following 3 projects have an initial investment of 1,500K but have different yearly cash flows and different lives. Table 1: Project cash flow comparison. a) Compare the 3 projects by calculating their payback periods [3 Marks] b) Compare the 3 projects by calculating their average gross annual rates of return [6 Marks] c) Compare the 3 projects by their Net Present Values using a discount factor of 5.0% [12 Marks] d) Which project would you recommend the company to choose and why