Using the information provided below:

Calculate the payback period of each project.

Calculate the NPV of each project.

Calculate the IRR of each project.

Evaluate the acceptability of each project using payback, NPV and IRR, independently. Be sure to tell which project you would choose based on each calculation.

Botany Designs is looking to revamp its manufacturing facility and has two different options they can choose from. The initial investment for each option is $100,000. They have set a minimum payback requirement of 4 years. The cost of capital is going to be 11% for each project.

Cash Inflows for years 1-5 are:

Year	Project Speedy (S)	Project Quality (Q)
1	32000	22500
2	32000	22500
3	32000	22500
4	32000	22500
5	32000	22500