1. Will is trying to select the best investment from among 3 alternatives. Each alternative involves an initial outlay of 100,000$. Their cash flows returns for each project are as follows (in $):

   year	project A	project B	project C
   1	30,000	0	40,000
   2	30,000	0	40,000
   3	30,000	50,000	40,000
   4	30,000	50,000	0
   5	30,000	60,000	0

   a) Which project would be selected if the payback method is used?

   b) Which project would be selected if the net present value is used at a 5% discount rate?

   c) Which project would be selected if the net present value is used at a 10% discount rate?

   **Please note that there are part marks available. You can also upload notes to the dropbox after the exam.**

   	I.	a, a, a
   	II.	a, a, b
   	III.	a, a, c
   	IV.	a, b, a
   	V.	a, b, b
   	VI.	a, b, c
   	VII.	a, c, a
   	VIII.	a, c, b
   	IX.	a, c, c
   	X.	b, a, a
   	XI.	b, a, b
   	XII.	b, a, c
   	XIII.	b, b, a
   	XIV.	b, b, b
   	XV.	b, b, c
   	XVI.	b, c, a
   	XVII.	b, c, b
   	XVIII.	b, c, c
   	XIX.	c, a, a
   	XX.	c, a, b
   	XXI.	c, a, c
   	XXII.	c, b, a
   	XXIII.	c, b, b
   	XXIV.	c, b, c
   	XXV.	c, c, a
   	XXVI.	c, c, b
   	XXVII.	c, c, c