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
Inital investment 120,000 140,000 180,000
Cash inflowstequals=1 to 5 40,000 51,500 52,500
Round to the nearest cent
a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each? project, assuming that the firm has a cost of capital equal to 13%. c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend.