You are a senior manager at Airbus and have been authorized to spend up to 200,000 for projects. The three projects you are considering have the following characteristics:

Project A: Initial investment of 158,000. Cash flow of 52,000 at year 1 and 108,000 at year 2. This is a plant expansion project, where the required rate of return is 9 per cent.

Project B: Initial investment of 200,000. Cash flow of 200,800 at year 1 and 113,000 at year 2. This is a new product development project, where the required rate of return is 19 per cent.

Project C: Initial investment of 104,000. Cash flow of 104,400 at year 1 and 102,000 at year 2. This is a market expansion project, where the required rate of return is 19 per cent. Assume the corporate discount rate is 9 per cent.

Required; Please offer your recommendations following your investment appraisal using Payback period, IRR, Incremental IRR, PI and NPV backed by your analysis