Compute the payback-npv-irr and profitability index

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Reference no: EM132072680

Capital budgeting decision making.

Compute the Payback, NPV, IRR, and Profitability Index for the following investments. Assume that the cost of capital for each project is 10% and the risk is similar. Which project is preferred?

Project A. Estimated cash flow is 9,962.60 per year for 9 years. Cost $50,000

Project B. Estimated cash flow is $19,677.15 per year for 6 years. Cost $75,000

Project C. Estimated cash flow is $25,075.33 per year for 5 years. Cost $90,000

Reference no: EM132072680

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