Techniques-decision among mutually exclusive investments

Reference no: EM131795195

Question: All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and? after-tax cash inflows associated with these projects are shown in the following table.

Cash flows	Project A	Project B	Project C
Initial investment (CF)	$40,000	$80,000	$80,000
Cash inflows (CF), t equals=1 to 5	$15,000	$27,000	$28,000

WACC NOT GIVEN.

a. The payback period of project A is ______ years. (Round to two decimal places.)

The payback period of project B is _____ years. (Round to two decimal places.)

The payback period of project C is ______ years. (Round to two decimal places.)

b. The NPV of project A is $______. (Round to the nearest cent.)

The NPV of project B is $______. (Round to the nearest cent.)

The NPV of project C is $______. (Round to the nearest cent.)

c. The IRR of project A is ____%. (Round to two decimal places.)

The IRR of project B is ______%. (Round to two decimal places.)

The IRR of project C is ______%. (Round to two decimal places.)

d. Which project would you recommend?(Select the best answer below.)

A. Project C

B. Project B

C. Project A

Reference no: EM131795195

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