Calculate the NPV, PI, and IRR for each project and indicate if the project shou

Question

Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. You are considering three independent projects, project A, project B, and project C. Given the following cash flow information , calculate the payback period for each. Project A. Initial outlay is 1000, inflow year 1 is 600, year 2 is 300, year 3 is 200, year 4 is 100, year 5 is 500. Project B. Initial outlay is 10000, inflow year 1 is 5000, year 2 is 3000, year 3 is 3000, year 4 is 3000, year 5 is 3000.

Explanation / Answer

Please give project C and also the rate of return of capital

Year a b PV of Cash flow A 0 -1000 -10000 A/(1+r)^0 B 1 600 5000 B/(1+r)^1 C 2 300 3000 C/(1+r)^2 D 3 200 3000 D/(1+r)^3 E 4 100 3000 E/(1+r)^4 F 5 500 3000 F/(1+r)^5 IRR 23.8171% 23.1918% r

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