Three projects have cash flows as indicated in the table below. Calculate the payback period for each project:

a. Without discounting

b. With discounting at 8%

c. Net present value (NPV), using an 8% discount rate

d. Which project would be preferred using each method?

What do the results suggest about the payback method in general?

Year	Project A	Project B	Project C
0	$ (2,000,000.00)	$ (1,500,000.00)	$ (2,500,000.00)
1	$ 500,000.00	$ 200,000.00	$ 1,000,000.00
2	$ 550,000.00	$ 350,000.00	$ 1,000,000.00
3	$ 600,000.00	$ 500,000.00	$ 500,000.00
4	$ 650,000.00	$ 650,000.00	$ 100,000.00
5	$ 700,000.00	$ 800,000.00	$ 100,000.00
6	$ 750,000.00	$ 950,000.00	$ 100,000.00
7	$ 800,000.00	$ 1,100,000.00	$ 100,000.00