Calculate the payback period for project

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Reference no: EM132801820

Suppose you are the financial manager of a firm considering the following five projects.

Project AProject BProject CProject DProject EInitial Investment-$10,000-$15,000-$14,000-$6,000-$1,500Year 1$5,000$5,000$6,000$4,000$1,000Year 2$4,000$5,000$4,000$2,000$250Year 3$2,000$5,000$3,500$2,000$100Year 4$1,000$5,000$2,500$2,000$100Year 5 $5,000$2,000 $100Year 6   $2,000 $100

  1. Calculate the Payback Period for each project.
  2. Calculate the NPV for each project, assuming a discount rate of 11%.
  3. Calculate the IRR for each project.
  4. Which projects should the firm implement based on your analysis If the projects are mutually exclusive? What if they are independent?

Reference no: EM132801820

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