The P&G Pakistan is a big and mature company. Most of business graduates look to work in it. Company periodically hires internees for period of 6 months on trial basis. Suppose you are selected as an internee. The Financial has given you following data to test your finance skills.

1. If you apply the NPV criterion, which project will you choose? Why?
2. If you apply the IRR criterion, which project will you choose?
3. If you apply profitability index criterion, which investment would you choose? Why?
4. Suppose due to financial constraints at market level, the projection for year three were revised to PKR 5,000, PKR 4,000 and PKR negative 3,000 for project A and project B and project C respectively. Which project would you choose using NPV approach?

Note: Use 10% discount rate