Question
Your firm faces the following investment alternatives, and can only select one project. Project A Project B Project C Project D Project E Time 0-10,000
Your firm faces the following investment alternatives, and can only select one project.
Project A Project B Project C Project D Project E
Time 0-10,000 -10,000 -10,000 -10,000 -10,000
Time 1 5,000 4,000 3,000 4,000 2,000
Time 2 4,0003,000 4,000 4,000 6,000
Time 33,000 10,000 5,000 4,000 10,000
a) Calculate the payback period for each project. If your company wants the shortest payback period possible, which project should you chose.
b) Calculate the IRR for each project. Which project should you choose?
c) Calculate the NPV for each project if the cost of captial is 8%. Which project should you choose.
Please show all work. Namely, functions used for example CF0 =, CF01 = F01 =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started